Commodities Featured Article Iron ore price

Fortescue decouples from iron ore futures

Tuesday, 2 December 2014

It’s as if it never happened yesterday. Suddenly the bottom is in, apparently, and major miners are rebounding. RIO is up 2% and BHP north of 3%. FMG has hit new post-GFC lows, however and is down another 3%. The latter makes sense and given iron ore futures are up today is an ominous sign that markets are finally getting it on FMG. Rumours of more job losses isn’t helping. My own view remains that the downside in oil is not over, either.

Here are the comparative indexes:

The idiocy spreads are still static and the moron cross (which needs a new name) is upon us:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.