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Big stupid face plants onto big iron pile

Monday, 30 May 2016

Big iron is face planting onto China’s growing port pile today as Dalian sinks -1% taking miners with it. BHP is -0.4%, RIO is -0.1% and FMG -2%. OK, hardly a face plant but it’s a start! If Dalian stays where it is I’d expect a small price rise tomorrow:

Big gas is doing better with WPL 0.5%, OSH 09%, STO -0.2% and ORG 1%:

Banks are siding with iron as CBA falls -0.7%, WBC -0.3%, NAB -0.3%, ANZ flat, BOQ flat, SUN 0.7%, BEN flat and MQG still charging 0.9%:

I have no idea when the big stupid will really end but a falling yuan will not help it.

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.