Iron Ore

Ahead of the Herd’s Rick Mills believes there are compelling reasons to invest in junior resource companies.

The US dollar rallies and metal prices fall, usually. Brokers look at rising copper production and portend an oversupply in iron ore.

Weak European data and the oversized shadow cast by Cyprus outweighed strong US and Chinese data last night. Dow down 90. (Accessible only for subscribers before 10:15 AEDST)

Wall Street shrugged off Cyprus and took heart in an unchanged Fed. Dow up 55. (Accessible only for subscribers before 10:15 AEDST)

Goldman Sachs has downgraded its iron ore price forecasts but a Conviction Sell on Rio Tinto from Goldman Global belies a Neutral rating locally. BHP is also at odds.

A rejection of the bail-out package by the Cypriote parliament has sent the Eurozone ministers back to the drawing board. Dow up 3 points. (Accessible only for subscribers before 10:15 AEDST)

The mounting opinion is that the eurozone ministers will back down on the extremes of their bail-out package for Cyprus. Dow down 62. (Accessible only for subscribers before 10:15 AEDST)

Chinese steel movements pressure iron ore price but Oz miners are still competitive if price stays well above US$80/t. Base metals outlook continues to diverge.

Wrap of events affecting the market on Friday night and the weekend and a preview of the week ahead.

Brokers find coal looks forlorn while gold costs loom large. Nickel is stuck in a range while oil & gas producers may soon become yield stocks.