Big iron hangs on as big gas explodes

Big iron is hanging on again today with BHP up 1.1%, RIO up 0.6% and FMG up 0.3% despite now losing 60 cents on every tonne it ships:

Dalian is up 1.5% on short covering which may be helping local stocks hang on.

Big gas, meanwhile, has ignited and not in a good way as Brent is thumped anew at the Asian open this morning. WPL is down -2.6%, OSH is down -3.5% as CS added it to its “shorts list”, STO has crashed -8.3% to new lows and ORG is being flogged -6.09 with LNG down -3%:

I’ve said it before and I’ll say it again, it is too early to be buying this sector.

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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.