Prices slump on China crisis but rebound later

London

MANY commodities faced a fierce sell-off earlier last week, rooted in demand fears arising from China's slowdown, but later rebounded in line with equities after surprisingly strong US growth data.

World stock markets were hammered on Black Monday - with Shanghai collapsing by almost 8.50 per cent - as risk-averse investors dumped shares and many commodities over panic that the flagging Chinese economy could spark a new world recession.

The Bloomberg Commodity Index of 22 raw materials tumbled to a 16-year low, with many markets plagued also by oversupply and rising production.

Sentiment was boosted on Thursday by easing China worries and upbeat US growth data, and after one of the most senior Fede…