Friday saw firming action in stocks, bonds and currencies for the global business cycle but behind the scenes the mining GFC is simmering away. Readers will recall that the MB thesis is that a healing US economy, tightening monetary policy and a US dollar bull market, combined the Chinese structural adjustment to lower and less commodity intensive growth, as well as financial market destocking of commodities will drive prices of same to undreamed of lows. Moreover, that that process will culminate in a cycle ending crisis of some sort in commodity producer and emerging markets (EM) debt that will accelerate the supply side shakeout in global excess supply.
The big victim Friday night was base metals which continue to set records to the downside, with copper and nickel both setting new post-GFC lows (iron ore did as well):
The big diversified miner most leveraged to copper, Glencore, was hit 2% as well, though like the others still sits just above recent lows on forlorn hopes a rebound:
