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.
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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