Big iron and gas ignite

Big iron is copping it today, finally. BHP is the on the verge of complete breakdown as it sinks -4% and is right on October lows, RIO is down a healthy -3% but FMG is barely down at all. This doesn’t make much sense. Either the Samarco shocker will lift iron ore or not. I’ve seen very wide estimates of the damage and outage. We’ll just have to wait and see. Dalian is up 1%, however, on the risk:

Meanwhile, big gas is also getting pounded as oil is hit by a rampant US dollar and STO raises equity. The latest rumour is that Sceptre is walking away so STO is about to be creamed. WPL is down -2%, its quarry OSH is barely down, again underlining the lunacy of the WPL bid, ORG has been monstered -5% and has demolished its previous support levels while LNG LTD is down -4% and looks more and more like Back Door Benny:

Finally some sanity.

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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.