Iron ore and coking coal futures have held Friday’s gains so far:
Which has BHP and RIO up a little, though FMG and WHC are down:
Given RIO has barely corrected since the crash began, let us ask, what is the difference between it and FMG? Given FMG’s great deleveraging, and RIO’s reliance upon iron ore for 90% of its profits, it’s a trick question. One ships ore at $30, 62% equalised, and the other $26. There is no difference. Something you might weigh up as this market fails to discount the big falls ahead for iron ore.
Big Gas is up for no apparent reason:
Why anyone wants to own ORG is beyond me. If the energy crisis is resolved then it’s going to take a big hit as margins collapse.
Big Gold is getting pounded post French election:
This is something of a conundrum. A rising euro pressures DXY lower which ought to support gold before long…
Big Debt is flying basically because there’s nothing else to buy:
And we’re charging into profit season.
Finally, Big Spruik does not seem to think that any kind of correction is imminent for housing:
REA poking at record highs as regulators take historic aim at household debt? I don’t think so.
The ASX is shaping up as a shorter’s dream right here.
