Big iron soldiers on, banks fade

Big iron is soldiering on manfully today as Dalian offers a little support. BHP is down -o.84%, RIO -1.5% but FMG is powering 1.4%:

This period reminds me more and more of last year when MB warned again and again that the miners were going to fall as iron ore did. The ASX seems to have learned nothing. RIO’s uptrend is broken.

Big gas is correcting too on OPEC jitters with WPL -0.2%, OSH flat, STO -04% and ORG -1.4%:

Banks are sagging with CBA -0.3%, WBC -0.8%, NAB -0.8%, ANZ -0.8%, BOQ -2.2%, SUN -0.2%, BEN -3.5% and MQG flat:

I assume they’re under pressure from the better data run as markets push out rate cuts but bonds have barely budged and the RBA will not stop anyway so if you think the economy is not a problem then BTFD!

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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.