Commodity prices fall to depths unseen since 1999 on China manufacturing fears

Commodity prices fell to their lowest levels in 16 years as the Bloomberg Commodity Index, which tracks 22 raw materials, tumbled 2% to 86 points on fears that Beijing had failed to stimulate China’s slowing economy, particularly its resource-intensive manufacturing sector, South China Morning Post reported. “On the back of already heightened anxiety over slowing growth, equity market volatility and its recent currency devaluation, manufacturing purchasing managers’ index data on Friday well undershot expectations, suggesting recent policy measures have not stabilised growth,” ANZ economists and strategists said in a note. “Moreover, commodity price movements are leading to deflationary fears.”