Monday, May 17, 2010

Citigroup (NYSE:C) Says Weak Economic Data Putting Downward Pressure on Funds

Citigroup (NYSE:C) analyst David Thurtell said the ongoing crisis in Europe, along with weak economic data is putting downward pressure on funds.

That has also resulted in commodities getting hammered, as zinc, aluminum, tin, copper and lead all fell on the London Metal Exchange, as fears over major cutbacks in spending by Europe and China is affecting the commodity prices.

Lead went as low as 10 percent to $1,740, it's largest fall since July 2009, tin was down 2 percent to $17,200 a ton. For zinc, it fell 10 percent to $1,840 a metric ton, a 10 percent decline, the worst fall since September 2009. Aluminum also too a plunge, down to $1,983 a ton, a 5.6 percent drop.

Europe is a major consumer of metals, accounting for 15 to 25 percent of all consumption of zinc, aluminum, lead and nickel produced in the world, and 20 percent of all copper.

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