BHP, RIO, FMG hammered as futures fall

I have already noted the pressure that big miners are under today. Here are regular charts:

1

BHP and RIO idiocy spreads are still expanding but they’re about to reverse sharply. The FMG sanity spread has broken out and is running:

2

Junior doom continues with ARI at a new all time low of 12 cents today:

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Dalian is unchanged from this morning at 435, down more than 1% from yesterday.

Comments

  1. ResearchtimeMEMBER

    This is seriously big news – it also implies no other IB will pick the slack…

    *****************

    HSBC dumps China PMI

    HSBC’s sponsorship of the ‘flash’ China PMI, the monthly and highly anticipated gauge of activity in the country’s manufacturing sector, is set to conclude at the end of the month amid speculation the bank is buckling to Beijing’s demands.

    According to a report in the Australian Financial Review, HSBC’s sponsorship will finish at the end of this month after it did not renew its global agreement with the survey’s private sector compiler, Markit.

    Official economic statistics are notoriously unreliable in China with even the country’s premier Li Keqiang preferring to rely on railway transport and electricity generation data to gauge the true state of the economy.

    The HSBC-Markit PMI survey regularly produces numbers which are at odds with the official gauge.

    Richard Willis, a director at Markit, told the AFR a new partner would be announced shortly.

    “It’s a blue chip name …. but no it’s not a bank,” Willis told the AFR. “Times have changed and banks are certainly more risk averse these days.”

    It’s not the first time the bank has been seen to buckle to the demands of Beijing. During the pro-democracy protests in Hong Kong last year, the bank was accused of pulling ads from a newspaper noted for criticizing Beijing.

    There was furore too when a research report from the bank warned that the protests would hurt Hong Kong’s stock market.

    • It’s at odds, but generally marginally so. Measures small to medium businesses, Official PMI includes large corporates and SOEs.

      • ResearchtimeMEMBER

        Only because there is a independent check… until now! Furthermore, its only because HSBC publications that the two have got closer – or have you forgotten that part, just only a few years ago?

        Do you trust Chinese data? No, neither do I…

  2. PantoneMEMBER

    Both my Rio and Bhp puts are almost in the money, with months to spare. Go you good thing.

    • StomperMEMBER

      My FMG puts expired yesterday 2c out of the money – Closed today 13c down – FAAARRRKKKKK!!!!!!

      • That’s what I don’t like about options – they expire and you are paying for the time value.
        I went with MINI shorts on RIO instead a few weeks ago. I don’t know if Citi have been able to borrow some FMG stock so they can offer MINI shorts again.