Commodity Stocks Fall, Govt Bonds Rally With Yen

Sliding commodity prices sparked a selloff in higher-yielding assets, with mining stocks dragging down equities, while the dimming outlook for inflation boosted government bonds.

From coal to zinc, raw materials are under pressure on concern the global economy is slowing. Glencore Plc fell more than 7 percent, leading European mining stocks toward the lowest close since 2009, and futures signaled U.S. shares will tumble. The longest-maturity Treasuries led gains and the yen strengthened against all of its 16 major peers.

Zinc retreated 1.5 percent to the lowest since June 2010 at 10:18 a.m. in London, while nickel fell 0.8 percent as China’s imports of the refined metal slumped to the smallest in four months. Copper fell 2.5 percent.

European coal for 2016 dropped below $50 a metric ton for the first time amid slumping demand from China. Prices have declined 25 percent so far in 2015, heading for a fifth straight year of drops in the benchmark year-ahead contract.