Producers of metals and other raw materials sank as the threat of new coronavirus lockdown measures around the world dragged down raw materials prices, heightening concerns among traders that investments tied to the global economy are set for another painful selloff.
Commodities have been among the market's worst performers during this week's bout of selling. Gold and silver are often perceived to be haven metals that hold their value during times of market turmoil, but a rising U.S. dollar was hurting them and other commodities by making them more expensive for overseas buyers.
Other metals such as palladium also dropped. Some precious metals have industrial uses, making them at times sensitive to shifts in the outlook for industrial metals demand.
Meanwhile, cotton prices have reached their highest levels since before the pandemic started, lifted by poor weather in the U.S. and steady demand from heavyweight importers including China.
In corporate news, BASF's management expressed general support for maintaining the company's current dividend policy but didn't rule out an adjustment of the payout for the current year amid the coronavirus pandemic.
Kazakhstan-focused miner KAZ Minerals said it has agreed to a 3 billion-pound ($3.91 billion) takeover by Nova Resources, a company owned by Oleg Novachuk and Vladimir Kim.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
10-28-20 1703ET
