Commodity Returns Plunge by the Most in Years on Virus Sell-Off
- Crude, gold and nickel all slump as risk-off mood gathers pace
- Coronavirus seen slowing growth, crushing raw material demand
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Returns from commodities are plunging on fears that the spreading coronavirus will crush demand for raw materials, fuel and food across the globe.
The Bloomberg Commodity Total Return Index, a measure that takes into account expiry of futures contracts as well as cash collateral invested in U.S. Treasuries, declined has 6.9% this week -- the most since 2011. Another gauge of returns is at the lowest level since 1987.