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The big iron dead cat bounce continues today with BHP up another 3.3%, RIO 1.8% and FMG is flat:
Dalian is falling today down two points. With China closed next week it is anybody’s guess where iron ore goes from here but mine, if you want it, is that the week after will resume weak. It is my view that this week’s squeeze has been engineered in an illiquid market pre-CNY.
Big gas, meanwhile, is falling again with WPL down -2.2%, OSH up 0.6%, STO -3%, ORG -1.5% and LNG up 1.5%:
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Oil also appears to be tiring.
Having said that, a weak NFP tonight and decent Chinese foreign reserves on Sunday, and we’ll be off to the races again.
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.