Big miners surge as iron ore futures crash

Tuesday, 4 November 2014

It’s another amusing and bemusing day on the equity market with the big miners all up firmly while the only thing that they sell tumbles into a bottomless pit (I know, it makes no sense to me, either). BHP and RIO are up half a percent and FMG is up an astonishing 2%. Here is the comparative performance chart:

As such, the idiocy spreads (which really need to be renamed the hilarity spreads) are bifurcating even more with BHP and RIO headed for record wides while FMG appears ready to close some more: sdfgwr

There’s no delusion surrounding the juniors, however, with AGO and BCI both smashed lower to new crash lows today:

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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.