Friday’s markets told July’s story in a microcosm: Commodities extended their worst monthly slump since 2011, Chinese shares dropped and the dollar advanced against emerging-market peers as the Federal Reserve moved closer to raising interest rates. Crude oil led the Bloomberg Commodity Index down 0.4 percent by 10:25 a.m. in London, extending the gauge’s decline in July to 10 percent. The dollar headed for the biggest monthly gain since January while a gauge of emerging-market currencies dropped to a record low. Italian bonds headed for their best month since 2013 and Russia’s ruble weakened before a monetary policy decision. The dollar’s ascendance amid rising bets on a U.S. rate increase in September has spread across financial markets, hurting commodities already in retreat on supply gluts and slowing growth in China. Emerging markets have been a chief casualty, while stocks in the U.S. and Europe are poised for their biggest […]