Australian recession Commodities Global Macro

Mining GFC eases again on oil bid

David Llewellyn-Smith

Friday 26 February 2016

The Mining GFC eased again last night as oil was firm. The US dollar was flat:

Commodity currencies were firm and the Aussie very strong which is perverse given yesterday’s awful capex numbers:

Brent oil was the driver as it rallied:

Base metals were weak:

And big miners mixed:

US and EM high yield was bid with oil:

Another day of easing concerns and despite a renewed crash in Shanghai late yesterday down -6.4%:

MB continues to see a full reversion to mean at 2000 but for today broader markets are calm.

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.