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Commodities fall on China announcement

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After a brief rally led by optimistic reports from China early this week, commodity markets fell when that country announced new a new stimulus plan earlier today, the Financial Times reports. Economists expect 8 percent growth for China, compared with 0.3 percent globally and a 2.2 percent drop in the United States; Wen Jiabao, China’s premier, said the country would meet that goal this year.

Copper fell 1.5 percent to $3,690 per metric ton “new spending plans forced some of the hedge funds that were betting on further price weakness to close their short positions,” the Times writes, while aluminum dropped 1 percent to $1,345 per metric ton. Oil fell for the third week, dropping 700,000 barrels last week, against the expected 1.2 million barrel increase.