14 January 2015 at 10:53 GMT
Commodities are at a 12-year low with copper falling almost 9% overnight before recovering slightly. Saxo’s Ole Hansen says the move downwards in this industrial metal was triggered by a technical break yesterday below USD 6,000 per tonne followed by the World Bank's decision to downgrade growth forecasts for 2015.
On top of that demand for copper in China is waning. Hansen says just like oil, the high copper prices of a few years ago encouraged increased investment by mining companies. But now demand isn't keeping up.
No surprise that commodity currencies are also under pressure, most notably the Aussie Dollar. Ole reminds us that Australia is a big exporter of industrial metals especially to China.