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It’s good news today for the big iron ore miners. Glencore and Rio blinking has it up nearly 2%. On the other hand, BHP has been pole-axed nearly 4% owing to its energy exposures. FMG is up 1.5% on the iron ore price bounce. Here are the comparative indexes:
The idiocy spreads are static now but RIO and BHP are closing on the moron cross (when BHP falls more than RIO):
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It may have to be renamed given the BHP oil hit is making the trade semi-rational. Though RIO remains spectacularly overpriced.
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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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