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The eerie calm surrounding Australian iron ore equities has been disrupted today with a wee bit of selling. The junior miners aren’t down much, given markets seem now to think they’re priced for takeover (by what patsy I have no idea). The standout is BCI which continues its swan dive into the tarmac:
Most of the action is finally today with the majors. Rio and BHP are both off 1% plus and FMG has dived 4.5%, is below its 2014 low, and indelicately poised above an open trap door:
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As such, the idiocy spread has begun to close but it’s got a lot of catching up to do:
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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.
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