ASX reverses as Dalian pukes

Big iron has hit a big brick wall today as Dalian pukes it’s crazy overnight rally down -4% at the open. BHP is flat, RIO still up 0.4% and FMG -1.3%:

Also weighing on shares is the sliding oil price which I expect to get worse. WPL is -0.4%, OSH flat, ORG -0.6% and STO flat:

Gold miners are also taking profits as gold falls back in Asia with NCM -1%, RRL flat, IGO 2%, SBM -2.3% and EVN 0.4%:

Of greatest concern is ongoing weakness in the banks which are swiftly sliding to Brexit lows on everything from Italy’s bailout problems to a looming Royal Commission. CBA is -1%, WBC -1.2%, NAB -1.6%, ANZ -1.3%, BOQ -1%, BEN -1.3% and MQG flat:

We can all draw sustenance from MEA still trading at its lows.

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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.