Iron ore miners balk at dead cat

Monday, 27 April 2015

The big iron short squeeze continues today in the equity market but it’s a bit of fizzer versus the underlying price. BHP has only managed to flop up 1.5% as it’s $500m Singapore tax shifting comes hope to roost and RIO is also under-performing London up only 2%. FMG is again the standout as it flies north another 8% to $2.37. To the indexes:

All idiocy spreads are now widening again:

But the juniors are becalmed today with no movement upwards for anyone:

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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.