- All six LME metals fall, with copper and nickel leading slump
- Mining shares follow slide in equities as jobs data misses
Glencore Plc shares headed for the biggest weekly decline since the company went public in 2011 as the selloff in mining shares showed no signs of slowing.
Glencore slid 5.9 percent on Friday, bringing losses for the week to 17 percent. Vedanta Resources Plc, an Indian miner of copper, aluminum and zinc, dropped 10 percent for the biggest retreat in the FTSE 350 Mining Index. Anglo American Plc and Antofagasta Plc sank more than 4 percent.
Mining and energy shares led the slump in global equities as U.S. payrolls data did little to bring clarity to the outlook for interest rates amid growing concern about the strength of the global economy. Employers added 173,000 workers in August and the jobless rate dropped to 5.1 percent, data showed. The gain in payrolls, while less than forecast, followed advances in July and June that were stronger than previously reported.
All six of the main industrial metals traded in London retreated, with copper declining 2.7 percent and wiping out gains from earlier in the week. China’s markets are closed for the second of a two-day holiday to mark the end of World War II, which has thinned trading volumes for metals.
Glencore, the commodities trader headed by billionaire Ivan Glasenberg, saw half its market value disappear this year as commodities tumbled. Standard & Poor’s cut the company’s outlook to negative from stable this week, saying China’s slowing economy will weigh on copper and aluminum prices that are already near six-year lows.