Australian LNG Commodities Iron ore price

Dead cat struggles to raise ASX

Friday, 28 August 2015

Given the size of last night’s moves in the US and commodity markets, big iron ore and gas is behaving with veritable sobriety undoing only a small portion of recent damage. RIO is up 4% and BHP 6% with FMG doing its usual at 6.5%. WPL is up 2.3%, ORG is up 4.4%, STO and OSH are up 5%. Everything remains locked in large downtrends and it will take lot more upside to break them:

Interestingly, banks remain under pressure with all four majors selling today. As a result the bourse is up a lousy 22 points.

If I had to guess I’d say the offshore bear market rally will flame out pretty fast this time. But you never know.

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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.