 "Commodity rout hits traders, emerging markets")
Shares in commodity trading firms took another tumble on Tuesday, driving global stocks to their lowest in more than two years as pressure built on raw materials prices and emerging markets.
Giant mining and trading firm Glencore, whose shares fell by almost a third on Monday on investor concern over its debt levels, eked out gains of 9% in early London trade but only after its Hong Kong-listed shares fell more than 30%.
Asian commodity merchant Noble lost 11%, having at one point in the session fallen by 15% to levels last seen in October 2008.
European shares opened lower, following a slide to 3 1/2-year lows in Asia caused by concerns a slowdown in China will dent its previously massive demand for commodities.
Emerging equities dropped 1% while sovereign dollar bond yield spreads hit 6 1/2-year highs on doubts about the creditworthiness of commodity exporting countries and companies.
Copper lost 0.4% after hitting a one-month low below $5,000 a tonne on Monday. It last traded at $4,945, within reach of a 6 1/2-year low below $4,855.
Platinum fell below $900 an ounce for the first time since 2009 on fears that the emissions scandal embroiling German carmaker Volkswagen could hit demand from the auto sector.
Gold fell 0.4% to $1,126.60 an ounce on worries US interest rates could rise later this year.
The pan-European FTSEurofirst 300 index fell 1%, led lower by biotech forms, which helped push the US Nasdaq index down 3% on Monday.
VW shares fell 1.6%.
MSCI's broadest index of Asia-Pacific shares outside Japan slid 2.0%, having earlier touched its lowest levels since June 2012. MSCI's all-country index of world shares lost 0.8%, touching its lowest since September 2013.
Tokyo's Nikkei index fell 4% to an eight-month low and turned negative for the year with shares of commodity-linked firms and shippers pummelled.
Commodity and energy shares led Chinese stocks lower. The CSI 300 index of the largest listed companies in Shanghai and Shenzhen fell 2% and the Shanghai Composite lost 2.1%. Hong Kong's Hang Seng fell 3%.
Commodity-linked currencies were hit hard, with the Australian dollar trading near 6 1/2-year lows before recovering. Instead, investors sought safety in the Japanese yen and Swiss franc, which traditionally do well in time of uncertainty.
"Everybody is looking at stock prices for trading clues. Those who usually love to look at interest rate gaps are also watching stocks," said Masatoshi Omata, senior client manager at Resona Bank.
DOLLAR
The US dollar was down 0.2% against a basket of major currencies and down a similar amount at 119.70 yen. The euro was up 0.1% at $1.1249.
Some analysts said the latest market turmoil could lead the US Federal Reserve to delay raising interest rates and that this was weighing on the dollar.
"The market thinks the latest bout of risk aversion will drive the Fed to postpone a rate hike," said Niels Christensen, FX strategist at Nordea. "That is weighing on the dollar, while the yen, the franc and the euro are all trading higher."
Since the Fed kept rates on hold on Sept. 17, markets have been puzzling over whether it will hike before the end of 2015.
There were mixed messages from Fed official on Monday and investors will be looking to a speech from Fed Chair Janet Yellen on Wednesday for more clarity.
Brent crude oil, which lost 2.5% on Monday, edged up 20 cents a barrel to $47.55 on signs of a tightening US market, although analysts said the outlook remained weak.
($1 = 119.9500 yen)
