Shares in commodity trading firms take another tumble, driving global stocks to their lowest in more than two years, as pressure built on raw materials prices and emerging markets. As David Pollard reports, shares of Glencore halted their slide after losing around a third of their value on Monday.
Glencore boss Ivan Glasenberg might be asking: where have the good times gone? When this picture was taken, he was fresh from a record-breaking merger with Xstrata. A year before that, Glencore's IPO made him worth billions. But half a billion could have been wiped off his fortune on Monday alone, when Glencore shares dropped by nearly a third. JP Morgan strategist, Michael Bell. (SOUNDBITE) (English) MICHAEL BELL, GLOBAL MARKET STRATEGIST, JPMORGAN, SAYING: ''We've seen a situation where during the commodity boom, companies invested a lot and that's brought a lot of supply in to the market, and now with a weakening in demand, we're seeing that cause problems for commodity prices.'' Like copper, one of Glencore's biggest earners - it's down nearly a third over the last year. The commodities super-cycle boom of the noughties was seen as a conveyor belt of money for big miners. But amid a recent glut, China's slowdown is aggravating a rout in prices. According to Investec, that renders much of Glencore's equity almost valueless. Others look vulnerable - Investec also singled out Anglo-American. Shares in Asian commodity merchant, Noble, have slid 15 per cent. Bulk shipping merchant Daiichi Chuo has filed for bankruptcy. And: commodity prices may yet fall further. (SOUNDBITE) (English) MICHAEL BELL, GLOBAL MARKET STRATEGIST, JPMORGAN, SAYING: ''Where it does hurt economies is in the emerging markets, especially those which have a large percentage of their exports from commodities. So countries like Russia, Brazil, are particularly exposed to this and we think there is further weakness ahead.'' In the meantime, UK-listed mining shares have been at their lowest in nearly seven years. Traders asking: where do Glencore and other stocks go from here before they hit rock bottom.