Iron ore juniors smashed as futures fall

Tuesday, 28 October 2014

Yes, it’s walk among the tombstones time again. The major miners are all off materially today with RIO firmly below $59 and BHP racing it south in the low $33s. FMG is outdoing them both as usual, down several percent to a low of $3.28 and only 2 cents above its 2014 closing low. Here is the relative performance chart:

The idiocy spreads are poised to resume contraction on the spreading weakness:

The real action is in the juniors. AGO was downgraded by Moody’s this morning and the BCI warning of lower shipments has both down 10% today:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.