A firmer Australian dollar, a rising oil price, a tumbling iron ore price are all irrelevant to iron ore mining earnings today with BHP up a little, RIO up a bit more and FMG flat. To the indexes:
All idiocy spreads are powering into imbecility again today:
Reassuringly for the cortex-endowed, juniors remain dead:
As I said yesterday, it’s not easy to pick the top of this titanic fatuity. Given it is largely hope-based, it could run for as long as it wants. The three triggers at this point are a falling dollar, earnings season sentiment, post Chinese New Year rebound optimism and after today’s inflation shocker more stimulus too.
My own view remains that iron ore will outpace dollar falls, earnings will therefore come under increasing pressure, and China will maintain its glide slope with property only partially rebounding.
But those are all beyond the next two weeks! Dalian up 2 points today.
David Llewellyn-Smith
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.
Latest posts by David Llewellyn-Smith (see all)
- CS: Australian GDP already recessionary - February 26, 2020
- Woolies wage theft balloons to $315m…and counting - February 26, 2020
- Trusting coronavirus statistics: Iran edition - February 26, 2020
YOU MAY ALSO BE INTERESTED IN
Daily iron ore price update (a happy ending)
Iron ore prices for February 25,
Another terrifying China steel pile chart
This time rebar inventory: Nothing to
Daily iron ore price update (cancelled)
Iron ore prices for February 24,
Daily iron ore price update (uppity)
Spot and paper up. No change.