The ferrous complex is blowing off as hot money chases anything on two legs:
When we see overnight gains in paper markets like this it is a dead giveaway that global hot money is chasing Chinese easing.
One can take this as a signal if we assume that China is on the verge of flood stimulus once more. But after a lousy 10bps of easing as the property sector falls apart, I can’t get excited by that. To me, authorities still look composed and things will need to get a lot worse to trigger substantial easing.
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