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Glencore stock price drops more than 25%, commodity rout starts claiming victims
Commodity rout lead by the fear of slowdown in China, wind up in US Federal Reserve monetary easing and weak global growth has started claiming victim.
This year, thanks to the above mentioned factors corporate defaults have reached highest since 2009. Already 23 oil companies have defaulted their commitment in US and share prices of mining and other commodity sector provider is getting hammered.
Glencore, few years back was being considered as giants of giants and this year the same company decided to shut off copper mines in Zambia, Africa, sell some assets and reduce its large debt pile.
Its stock is getting keep getting hammered, as of latest update, stock price is down 27% trading at just 70 pence in London. Lower the price will go, tougher will it be for Glencore to finance its debt (though it has financed some already). Since credit default spreads are clearly on the rise.
Glencore is not alone in the rout, another large miner Anglo American's share is down 85% from their peak to 16 year low.