Another record low for the global iron ore price overnight will make life tough for the local market as traders eye again eye the 6,000 point level for the ASX 200.
The market failed to crack that level yesterday, despite reaching 5,995 in early trading yesterday, only to fall away and end down 19.4 points at 5,956.1.
A weak end on Wall Street and a slide in the value of the US dollar (and a rise in the value of the Aussie to just on 79 US cents) saw our share futures market close in the red to the tune of around four points.
That won’t make local punters confident of pushing the market back towards the 6,000 point mark for the ASX 200.
That’s not a big fall, but the 1% slide in the iron ore price will again raise questions about the health of many in the sector, starting with Fortescue which closed at $1.98 yesterday.
The iron ore spot price for immediate delivery to the port of Tianjin in northern China was trading at $US54.20 a tonne, down 1.5% from the prior close of $US55.00 a tonne.
It is the lowest since 2009 when the current price setting system came into being. Prices are now down 64% from the start of 2014 and approaching 20% from the start of this year.
An indecisive end to the session in New York won’t help confidence. After being up for most of the day (even if the margins were not big), Wall Street turned lower in the last minutes to close lower.
The S&P 500 ended the session 3.68 points, or 0.2%, lower at 2,104.42, while the Dow finished 11.61 points, or 0.1%, lower at 18,116.04.
The Nasdaq lost 15.44 points, or 0.3%, to end at 5,010.97.
Locally today interim reports are due from New Hope and TPG Telecom, both part of the Soul Patts – Brickworks group of linked companies (by shareholders and board membership).
