Mining companies and oil producers tumbled worldwide as a renewed slide in commodity prices saw oil drop to a six-month low and copper neared a bear market.
The Bloomberg World Oil & Gas Index of 65 of the leading producers declined 1.4 percent to its lowest in five years. The Bloomberg World Mining Index of the biggest mining stocks fell 1.5 percent to near its lowest since 2009.
More than $450 billion has been erased this year from the value of both indexes. Commodities dropped after an official gauge of Chinese manufacturing slid to a five-month low and Iran said it will be able to bolster crude production within a week of sanctions ending.
“Any sense of optimism is being bashed out,” Colin Hamilton, head of commodities research at Macquarie Group Ltd., said in a phone interview. “People are looking at the PMIs and think they have haven’t inspired much confidence.”
Brent futures fell as much as 3.8 percent, extending an 18 percent drop in July. Hedge funds have reduced bullish bets on West Texas Intermediate to the lowest level in five years.
Copper declined as much as 1.7 percent to $5,142 a metric ton and was at $5,212 by 4:22 p.m. on the London Metal Exchange. A closing price of $5,184 would mark a drop of 20 percent from the May 5 peak, meeting the common definition of a bear market.
A private Chinese factory gauge released on Monday fell to a two-year low in July and an official index on Saturday slipped to the weakest in five months, adding to a near-$4 trillion rout in Chinese stocks and declining car sales that are threatening economic growth.
Petrochina Co. shares declined 4.7 percent in Shanghai trading Monday, leading declines on the Bloomberg World Oil & Gas Index. Asian companies also led losses for miners with China Molybdenum Co. slumping 9.9 percent.
Glencore Plc, the commodity trader and mining company headed by billionaire Ivan Glasenberg, slumped to a record low in London. The stock fell as much as 3.9 percent to 200 pence.
It’s plummeted more than 60 percent since a $10 billion initial public offering in London and Hong Kong in 2011, when the company sold shares at 530 pence each.