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Glencore crumbles amid commodity crunch

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Shares of the world's biggest commodity trading firm, London-listed Glencore International, have plunged 9.5% in the last two days and are now well below their IPO levels. Glencore launched at 530 pence back on May 19 and have since followed a largely downward trajectory, hitting a new low of 473 pence this morning. Much of the recent pain is on news that the British antitrust regulators have proactively banned Glencore from making any sort of takeover bid for Kazakh miner Eurasian Natural Resources Corp. While Glencore swears it was not even considering making an offer on ENRC, the London papers are convinced otherwise. CEO Ivan Glasenberg calls the speculation a case of the press getting "ahead of themselves." In any event, the M&A hopes -- and their frustration -- are really just a sideshow in the face of traders' general skittishness around fragile commodity markets. Glencore is the king of the commodity trading space. If the commodity boom is looking tired here or evaporates entirely, its business takes a big and immediate hit. And with the dollar pushing through key technical levels, commodities look like they might not get much comfort in the near term. Beware the miners in this environment, from the giants like BHP ( quote ) on down:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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