Big iron and oil crash but still not enough
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Big iron is down hard but nowhere near enough. BHP is down -2.7% to another post-GFC low (buy some more, Sykesy), RIO is down -1.5% and well above last week’s lows rather stupidly and FMG is down -3.3% but also hovering around last week’s lows despite now losing $495m per annum. The Australian equity market just does not get what is happening:
The junior’s grave yard is deathly quiet as the truth appears to have finally sunk in for them at least:
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Big gas is also being pounded with everything at post-GFC lows as WPL falls -2.3%, OSH tumbles -5.8%, ORG falls -3.5%, STO -4.5% and LNG -10.1%:
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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.