This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
This accelerated on news Chinese industrial profits year-on-year were well ahead of expectations and saw the short selling in the miners slowing down.
Once more BHP is under pressure for the shorters; iron ore slipped again overnight to $113 a tonne, but there is a clear battle going on with the stock heading into the end of financial year.
BHP is currently 2% up in FY13, the shorting shows that loss-making positions are being closed out ahead of the final rebalance of fund managed portfolios. It will be very interesting to see what happens on Monday when the New Year begins for BHP.
The banks and defensives are the ones snapping back as yield hunters and bargain hunters jump in on optimism the election could be earlier than expected and the current government will engage more with business.
It is clear from the leadership change in Canberra that the market is looking for signs a change is in the air, the malaise from Canberra has caused business to switch off and the sooner it comes the better.