Big iron hangs on grimly as world crumbles

Friday, 21 August 2015

Big iron is hanging on grimly to last night’s rise in London as China and the world falls all around it. The China PMI has dumped S&P500 futures, oil is threatening to break into $45 and Shanghai stocks are down 2% and within spitting distance of a new low. But RIO is up 0.3% and BHP down only 1%. FMG is down a more sane down -3%:

Idiocy spreads are now trending sharply inwards and it is my view that we are verging on a big jump closed here:

Junior carnage has returned with ARI, MGX and BCI all shunting to record lows:

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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.