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Despite the fact pre-market futures for the ASX suggested we were in for a green Friday, that hasn’t been the case as market malaise extends into a fresh month. Adding to pressure on Friday: lowering iron ore prices on Singapore’s SGX.
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The price of iron ore futures in Singapore – Australia’s most relevant iron ore benchmark that informs trading and investment decisions down under day by day – has recently fallen from levels touching US$110/tn to hover just above US$100/tn.
While that’s a better price point than what iron ore futures were at this time last year, below US$90/tn, the news hasn’t been welcome as the ongoing Iran war cascade continues to shape the ASX as a second-rate market in comparison to Wall Street, and, many of Australia’s Asian peers.
Adding to pressure from low gold prices, the ASX’s largest company, BHP Ltd, was down over -2% on Friday, though, the Big Aussie’s stock price remains above A$60/sh, a new valuation it’s recently met as copper prices continue to surge.
Only two days ago, BHP shares hit a fresh record high not far off A$65/sh.
While the price of copper has touched record highs multiple times in recent history, futures were down nearly -1.3% on Friday, adding to market pain. Still, the red metal’s climbed nearly +5% over the last month.
But it’s not just BHP seeing red on Friday – iron ore player Fortescue was down -2.5% in late morning Friday trades; MinRes was down -3.7% as lithium also takes a -1.3% dip.
A fickle ASX is set to remain the status quo for the foreseeable future, bar some kind of increasingly unrealistic sudden peace deal in the Middle East. Commonwealth Bank was also down three quarters of a percent.
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