Big Iron drags ASX into the pit

The Aussie dollar remains weak during the day:

Bonds are bid:

XJO is off moderately:

Dalian is weeeak:

Big Iron ore is getting shellacked. FMG is still shaping beautifully for a downside break through $4.50:

Big Gas is marking time. Still a sell:

Same with Big Gold:

Big Sleazy is holding up OK today:

Big Puswad is also mixed. MEA is exploring new closing lows:

Big Retail wants a bottom but good luck!

Someone asked yesterday why falling iron ore prices have not hit miners harder. The answer is that the brokers all have outlooks below where spot was. In fact, Morgan Stanley upgraded bulk prices today! As we fall from here the downgrades will begin and the equities fall too.

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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.