Producers of metals and other raw materials fell as the outlook for commodity prices looked set to diverge from miners' profits.
There are signs that the U.S. economy is headed towards "stagflation," where rising prices coincide with slowing growth, according to strategists at brokerage Goldman Sachs Group and elsewhere.
Meanwhile, demand appears to be slowing in another key commodities market. "With copper and aluminium demand and supply under siege from China power rationing, as well as the property downturn since mid-year," profit projections for metals producers are under threat, said analysts at brokerage Credit Suisse, in a note to clients.
Hong Kong miner Zijin Mining Group agreed to buy Canadian rival Neo Lithium, the latest excavator to increase investment in mining a commodity that's become crucial for the shift to electric vehicles.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
10-11-21 1627ET
