Copper was at an eight month low with investors concerned that global financial instability would impact demand.  Analyst, Leon Westgate, of Standard Bank noted further liquidation to be expected.

All markets are linked to each other which makes things like Lehman going under much more worrying — you wonder where the next weak link in the chain is,’ he said.

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AIG and Lehman Brothers‘ situations saw European shares fall.  The London Metal Exchange has suspended Lehman Brothers from electronic trading after declaring them a defaulter.

Markets in China, Japan, South Korea, and Hong Kong reopened

after holidays and quickly followed falls in New York, where the

Dow Jones industrial average saw its biggest drop since

the September 11, 2001 attacks.

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For the first time since February 2002 China cut their interest rates in a move to mitigate domestic market upset.  Either China’s economy is being adversely affected or their growth may continue at current levels through the abatement of some of their inflation control.

The premium for Shanghai‘s third-month copper futures versus

the London benchmark, including China’s 17 percent value-added

tax, widened to 121 yuan from 73 on Friday, having earlier

reverted to a discount. The difference flipped into a premium on

Sept 9.

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