Big iron and gas sink

Big iron is down today as the iron ore price slides. Chinese growth data has lifted spirits a bit since its release even though it was bad for building-dependent stocks. BHP is down -0.7%, RIO is down -0.4% and FMG is down -3.3%:

The China data was bad for these stocks given it showed no turn in the building economy, lot’s of rebalancing success limiting the need for stimulus, and it will add to Fed hike bets at the margin. Thus I can’t see why these stocks would continue to rally from here and, if I still did such things, I would go short today (which is not advice obviously). Dalian is flat.

For big gas, WPL is up 1.5% after the oil price rise. OSH is up a bit and STO down a bit. ORG has been flopping about at re-listing lows:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

Share

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.