impact Europe Debt Crisis Will Spread Commodities market will dropped

impact Europe Debt Crisis Will Spread Commodities market will dropped : Commodities dropped by the most since Nov. 1 on concern that Europe’s debt crisis is spreading and will erode demand for raw materials. The Standard & Poor’s GSCI Index fell to the lowest in three days. Twenty-two of the 24 commodities in the gauge declined. Brent oil, copper, and gasoil were among the top movers. Equities fell for a fourth day, the longest stretch of losses in two months. Spanish and French borrowing costs rose earlier before paring gains and China’s central bank said it’s not ready to loosen inflation controls.

“The situation in the euro zone has deteriorated amid renewed worries about Italy and Spain’s fragile economies,” Myrto Sokou, a London-based analyst at Sucden Financial Ltd. said in a note. “The European economy looks more chaotic, with serious debt issues that hurt investors’ sentiment and limit risk appetite.”

Spain sold 3.56 billion euros ($4.8 billion) of 10-year bonds at 6.975 percent, while France sold 3.33 billion euros of 2016 notes yielding 2.82 percent. German Chancellor Angela Merkel said that neither joint euro-area bonds nor using the European Central Bank as a lender of last resort offer solutions to the debt crisis at present.

The S&P GSCI index was down 1.3 percent at 666.25 as of 2:30 p.m. London time.

Oil in New York fell from a five-month high. Futures for December delivery slid 1.1 percent to $101.51 a barrel on the New York Mercantile Exchange. Prices have risen 11 percent this year. Brent crude was down $1.97, or 1.8 percent, to $109.91 a barrel on London’s ICE Futures Europe exchange.

“Brent remained under pressure from Europe’s crisis and the return of Libyan supplies removing some of the risk premium from prices,” Natalie Robertson, a Melbourne-based commodity analyst at Australia & New Zealand Banking Group Ltd. said.

Copper futures for March delivery fell 7.35 cents, or 2.1 percent, to $3.4295 a pound at 1:11 p.m. London time on the Comex exchange. A close at that price would mark the biggest drop for a most-active contract since Nov. 9.

Gold for immediate delivery dropped for the second day to $1,746.70 an ounce in London. Silver declined 2.2 percent to $33.01 an ounce.

The Standard & Poor’s 500 Index was down 0.3 percent at 1,233.59 at 2:38 p.m. in London, and the Dow Jones Industrial Average decreased 0.1 percent to 11,888.56. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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