Glencore share price closes sharply lower amid commodities rout, China and Credit Suisse downgrade
Glencore shares closed down 10.6 per cent to 106.35p this afternoon, as commodity prices careered downwards amid concerns over China's slowing economy.
Earlier today, the commodities trader and miner fell below the 100p per share mark for the first time since it listed, sliding 14 per cent to 99.9p per share.
Commodities such as copper and coal, have suffered on the back of the economic slowdown in China, the world's largest consumer of raw materials. Copper prices fell to a two-week low today.
This has made Glencore the worst performer on the FTSE 100 this year. But the company recently embarked on a £1.6bn share placing to help reverse its fortunes.
Read more: China may have stumbled – but the UK still has much to gain from closer links
"Glencore’s recent attempts to prop up its share price have been rendered rather fruitless," Brenda Kelly, head analyst at London Capital Group, said.
Anglo American and Antofagasta were also affected, falling 7.7 percent and seven per cent respectively, after downgrades on miners from broker Credit Suisse.
"Until China demand and emerging market currencies find a floor, it will remain challenging to put an absolute floor on commodity prices," the note from analysts at Credit Suisse said.
However George Osborne is still optimistic about the opportunities that China offers for London's growth, writing in City PM today that "we want to build strong links with every part of China and recent volatility should not and will not put us off."