Icarus banks and miners soar towards Delta and iron ore Sun

Wednesday, 11 August 2021

XJO is soaring on Icarus wings today at another all-time high:

The two main drivers are obvious. The CBA bubble is inflating at an alarming speed after its result, dragging other banks with it. The US curve steepening is a factor even as Australia crashes into deep recession. Crazy times:

Mining is enjoying a day off recent declines even thought Dalian has erased all overnight gains:

BHP is more richly valued now than it was when iron ore was $70 higher! RIO is slightly down. FMG is down more heavily:

QE does some wild things to asset prices.

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.