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Stock market training: Commodities outlook darkens

Stock market training: Commodities outlook darkens
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The collapse of mining giant BHP Billiton's bid to take control of rival firm Rio Tinto has darkened the outlook for commodity markets on the stock exchange.

Macquarie analyst Jim Lennon said the move highlighted the weaknesses currently being witnessed by the base metals sector, reports the Financial Times.

He commented: "This retraction shows things are much worse than the market generally accepts."

In early trading, copper fell 0.9 per cent, while lead and tin both fell 1.2 per cent. Aluminium and zinc managed to increase by 0.4 per cent and 1.7 per cent respectively.

"The supply side continues to surprise with its speed of reponse," said Damien Hackett, a metals and mining expert at Canaccord Adams.

Formed from a merger between BHP and Billiton, BHP Billiton is a global leader in the resources industry with a diverse range of products, customers and markets

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