NEW YORK: World equity markets and commodities fell on Wednesday as global growth concerns dented investor sentiment yet again and disappointing earnings reports weighed on Wall Street stocks.
Copper, considered a barometer for manufacturing and China-related growth, fell more than 3 percent, weighed by worries about the global economy and a 10.3 percent decline in March European car sales, a key source of metals demand.
US and European shares fell more than 1 percent after the car sales report added to fears about Europe's economy and after the International Monetary Fund on Tuesday downgraded its global growth projections for this year and next.
Defying earlier industry predictions of a second-half rebound, auto sales in Europe are headed for a sixth straight annual decline to a two-decade low.
"The macro outlook remains bleak and equities markets are still not pricing it in yet," said Jerome Troin-Lajous, a trader with Louis Capital Markets. "It's time to get protection, continue to get out of cyclical and industrial stocks, and turn overweight (on) 'flight-to-safety' trades."
Gold rose in choppy trade after a slide to two-year lows this week lured Asian buyers. Sentiment was severely shaken by the biggest two-day rout in 30 years that ended on Monday, and gold is seen as vulnerable to further sell-offs.
Brent crude fell below $98 per barrel on the prospect of sluggish US and Chinese fuel demand that will be squeezed at the same time by rising crude supplies in the United States.
The North Sea benchmark has lost nearly 6 percent over the past five sessions in a commodities rout triggered by data showing that growth in China, the world's second-largest oil consumer, slowed unexpectedly in this year's first three months.
"At the moment the oil complex is in a technical downtrend with the fundamentals being driven by a deteriorating demand projection in a robust supply environment," said Dominick Chirichella of Energy Management Institute.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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