Commodities

A commodity sell-off sent the FTSE 100 down almost 2% at 3pm as investors dumped risk assets on European debt concerns.

Glencore International has closed its books a day early after its initial 530p per share offer garnered strong investor demand.

Slower global growth combined with the end of QE in the US has left commodities vulnerable to a further correction, Cazenove's Richard Jeffrey has warned.

The bull run in commodities is set to continue, despite the recent sell-offs and mounting fears some assets in the sector are overheating, according to asset allocators.

Commodities continued to tumble today on the back of global growth concerns, with oil and silver plunging to their lowest levels since March.

BlackRock and Fidelity are both backing commodities giant Glencore's IPO, according to reports.

Legg Mason's US equity veteran Bill Miller said US large caps have become "an empty stadium" as investors flock to the "overvalued" commodities sector.

The oil price fell by as much as $3.25 a barrel on Tuesday after the world's biggest commodity trader called the top of the market for crude and a range of other commodities.

RAB Capital says it "made mistakes" in the run up to the financial crisis as it reveals the majority of investors will exit its Special Situations fund when it reopens after a three-year suspension.

Hedge fund house RAB Capital is set to launch two UCITS III funds focusing on the commodities sector.