Pressure on commodities continues

Nikkei 225 opened significantly lower this morning by 1.9%, while South Korea's KOSPI lost 1.8% and Australia's All Ordinaries dropped 2.6% to tracking the downfall of Wall Street and most European markets on Monday. Toronto, heavy with commodities, also crashed 4.4%. 

Pressures on energy stocks continued this morning with the fall of BHP in Australia by 4%, Rio Tinto -4.42%, Gloucester -3.6%, Macarthur -5.7%, and Straits Resources Ltd -6.84%. Metal stocks Fox Resources, Mincor, and Minara also lost over 4% in Australia.

Indonesia, also heavy with mining and energy stocks, might follow suit. Negative sentiment from the fall of CPO prices will add pressures. CPO futures contracts in Malaysia Derivatives Exchange slashed significantly by 5% to RM2158 per ton or 23% drop in three weeks.

CPO prices might drop further today. Bids for September 2009 delivery has touched RM2058 per ton this morning. 

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