Commodities dip to year-low

Global commodities tumbled today (September 22nd) following weak action from the Federal Reserve to tackle the US's faltering economy.

Bloomberg reports Standard & Poor’s GSCI Index fell by 3.7 per cent in commodities trading this morning to 614.77, while copper fell, as did crude oil and wheat, dropping to four-week and ten-week lows respectively.

These actions have therefore erased the entirety of gains for the last 12 months, with the statement by the Fed of "significant downside risks" sparking fears that raw material demand will decline.

"We're seeing the dollar strengthen and that's weighing down on the whole commodity complex," Dan Smith, an analyst at Standard Chartered in London, told the news provider.

Analysts are now predicting the global economy will rise by just four per cent in 2011 - down from earlier estimates of 4.3 per cent.

Meanwhile, the Telegraph's David Kerns recently claimed a default on Greek debt could have significant impact upon the world economy, causing many markets to be paralysed.