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There’s nothing like some really bad Chinese data to get the young bucks up an buying miners again and that’s what we’ve got today and the roaring idiots clambering over one another to bid up BHP 3.6%, RIO 1.9% and FMG 1.5% even as Dalian opens another point lower and the Australian dollar sends local iron ore price towards Hades:
Let us not be swayed by reason here. What we need is some more animal spirits, like in big gas which is off the races too as WPL surges 2.4%, OSF 0.4%, ORG 4.1%, STO 1.3% and LNG 5.4%, even it doesn’t mine falling iron ore:
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Truly, equity markets make no sense whatsoever!
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.