Iron ore prices have fallen over 12% from a two year high earlier this month over $US145 a tonne to $US127.5 on Tuesday. Prices had risen on expectations of healthy iron ore demand for winter restocking amongst growing optimism that Beijing’s latest round of stimulus to revive China’s troubled property market. China has continued to struggle; shipping has been impacted by the Red Sea attacks as a result commodity prices including iron ore have sold off. Commodity price sensitivity is … Continue reading “Iron Ore Prices Retrace 12% from Two Year Highs, Dragging Aussie Dollar Down”
Stocks Up 20% Globally, Best Since 2019, Can They Continue?
The MSCI’s world share index, a broad measure of global developed market equities, posted a 21.56% gain in 2023, its most in four years. The move was established in the run since October as investors bet central banks will begin cutting interest rates in 2024. The buying triggered short covering which exasperated the move higher. The big question as always with stocks, can they continue higher? There are many factors, the main one at this time is interest rates given … Continue reading “Stocks Up 20% Globally, Best Since 2019, Can They Continue?”
Iron Ore at Eighteen Month Highs as China Walks a Tightrope Trying to Save Property Market
Iron ore prices climbed to eighteen-month highs on expectations of healthy iron ore demand for winter restocking amongst growing optimism that Beijing’s latest round of stimulus will revive China’s troubled property market. December futures prices for iron ore cargoes with a 63.5% iron ore content for delivery in Tianjin rose to $139 per tonne the highest since June 2022. The benchmark January iron ore on the Singapore Exchange rose 1.4% to $US137.55 a tonne, up 2.7% for the week. The … Continue reading “Iron Ore at Eighteen Month Highs as China Walks a Tightrope Trying to Save Property Market”
BHP Record Full Year Iron Ore Output, Copper Production Up 9%
Australian mining giant BHP, said on Thursday quarterly iron output at 72.7 mln metric tons. This put annual iron ore output for FY23 at 285.3 mln metric tons, a record. Quarterly iron ore output rose, aided by a continued ramp-up at its South Flank project. South Flank is on track to hit full capacity by end 2024. BHP said unit costs at its Western Australia iron ore operations and Chilean copper mine Escondida are expected to be towards the upper … Continue reading “BHP Record Full Year Iron Ore Output, Copper Production Up 9%”
An RBA Fit for The Future, 51 Revolutionary Recommendations for Australia’s Central Bank
The release of an independent review on the Reserve Bank of Australia, An RBA fit for the future is the biggest clean up, if not revolutionary change for the RBA since inflation targeting and formal independence was established in the 1990s. The review gave 51 recommendations, which the Government gave in-principal support to all of them, were outlined by the Australian Treasurer on Thursday. The report identified 4 ways the governance, monetary policy framework, culture and systemsof the RBA should … Continue reading “An RBA Fit for The Future, 51 Revolutionary Recommendations for Australia’s Central Bank”
Australian Consumer Confidence Jumps as Household Inflation Expectations Eased
Weekly Consumer confidence climbed 4.9 points last week to 87.4, starting the new year with the first increase since 2018, ANZ-Roy Morgan consumer survey showed on Tuesday. Inflation expectations dropped from the end of 2022, falling 0.9% to 5%. Its moving average for the last four releases fell 0.3 percentage points to 5.7 per cent. Confidence is still well below the neutral level (100) and the long-run average of 111.7. Highlights Adelaide Timbrell, a senior economist at ANZ. Source: ANZ … Continue reading “Australian Consumer Confidence Jumps as Household Inflation Expectations Eased”
China’s Reopening to Add ~1% to Australian Growth Through Tourism and Education – JPM
Australia’s economy will get a big boost from the end to China’s zero-Covid policy over the next two years JPMorgan said in a note Saturday. JPMorgan’s chief investment strategist Tom Kennedy said “The largest potential upside from reopening itself sits within the services sector given China is the largest consumer of Australian tourism and education exports.” JPM sees a full recovery in Australia’s tourism adding 0.5% to its gross domestic product and the return of international students from China will … Continue reading “China’s Reopening to Add ~1% to Australian Growth Through Tourism and Education – JPM”
Resilient Australian Stock Market Outperformed in 2022, Supported by Mining and Energy Stocks
Australia’s blue-chip stock index, S&P/ASX 200 ended down 5.45% to 7,038.7 in 2022. On the last day of the trading year the ASX was up +0.3% and -0.9% for the week. This compares to 2021 being up over 13% for the year. Australian shares ended 2022 as one of the region’s more resilient markets with mining firms supporting as globally stocks were pummeled. The end to an era of low interest rates that made borrowing cheap and encouraged investors to … Continue reading “Resilient Australian Stock Market Outperformed in 2022, Supported by Mining and Energy Stocks”
BHP Quarterly Iron Ore Output Higher with Continued Ramp Up at South Flank Mine
Australian mining giant BHP said on Wednesday its quarterly iron ore output rose, aided by a continued ramp-up at its South Flank project. BHP continues in sync to replace diminishing iron ore output from its existing Yandi mine which is nearing the end of its life. The first ore from its $4.6 billion South Flank mine in the Pilbara, WA was mined earlier this year. Production in the September quarter has stayed high while at the same time spot prices … Continue reading “BHP Quarterly Iron Ore Output Higher with Continued Ramp Up at South Flank Mine”
Australian ASX 200 Snaps Three Month Losing Streak in July with Aussie at Six Week High
The Australian share market broke a three-month losing streak with a 5.7% rise in July. The ASX 200 closed July on a seven-week high at 6945.2. Markets climbed a wall of worry in July with the worlds’ central banks raising rates as they fought to tighten against rising inflation. The month saw an onset of technical recession in the US, falling retail turnover reported by the ABS and Treasurer Jim Chalmer’s warning on Thursday of an economic slowdown. The Reserve … Continue reading “Australian ASX 200 Snaps Three Month Losing Streak in July with Aussie at Six Week High”