Big iron finds green shoots as Dalian tanks again

There is nothing like equity market hope. It is bright and shiny and roundly stupid. Today is a perfect example as Dalian opens -2% down and clearly under pressure yet big iron takes off as if it sells oats with BHP 3.4%, RIO 2% and FMG 3.7%:

The hope is that the worst is over. But it ain’t yet in my judgement. I still expect to see us back into the $40s driven by further steel price falls before a rebound.

In LNG, there is more and similar hope, with WPL 1%, OSH, 1.5%, STO 1% ORG 1.3% and LNG 3.7% even though short term disruptions to oil should not be outweighing the longer term bearish shifts in Saudi. But hey!