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Trading Idea of the Day
ASX:FMG - Fortescue Metals Group - BULLISH BIAS
- Key levels on the chart - consider taking trades from key support/resistance zones.
World No. 2 iron ore producer Vale SA saw a steeper-than-expected drop in profit on slumping prices and lingering cost inflation which saw the largest iron ore miners globally tumble.
The Brazilian mining giant reported adjusted earnings before items of $US3.7 billion for the third quarter, down 47% from a year ago and well below the $US4.6 billion average analyst estimate.
Vale is focusing on higher quality ore in a bid to defend margins from the lowest iron ore prices in two years. Futures have slumped on concerns over the cooling impact of higher interest rates, combined with China’s COVID restrictions and real-state woes. We may start to see a similar theme with FMG as well.
Rio Tinto and BHP have warned that commodity producers will keep struggling with global economic uncertainties and a patchy recovery in China. Baoshan Iron & Steel Co, the world’s largest steel maker, also delivered a bleak outlook for the industry in China this week, predicting demand in the country could fall 5 per cent this year.
ASX & Economic Key Events
OPTO For Investors Research
Article of the Day: Slowing cloud spend spooks Alphabet, Amazon and Microsoft
Podcast of the Day: Doomberg on Nord Stream sabotage and monetary mayhem
APAC Daily Report
Market Snapshot & Highlights as of 7:30am AEDT
Global Markets Headlines
(All news & data sourced from AFR / The Australian / Bloomberg / Reuters / CNBC / Wall Street Journal / Morningstar / OPTO / Trading Economics)
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