Iron ore price, page-49953

Despite a notable drop in IO overnight, resource stocks (and equity markets as a whole) continued to rally, although expected gains in Australia are just a fraction of that in the US due to an almost 1c gain in the AUD. All currencies gained significantly against the USD overnight, so don't expect much from your international ETFs today.

Tonight, is June option expiry in the US - one of the largest option expiries of the year - thus the higher volume, especially tonight. Quarterly index option expiries can significantly distort market movements and I suspect we will see the 6 straight days of gains US markets have experienced into this expiry quickly unwind thereafter as those gains are more likely than not to be derivative related. Bull markets are built on excess liquidity, higher interest rates, quantitative tightening and the replenishing of the Treasury General Account are in significant contradiction to that.

It's also worth noting the Bank of Japan meets today and any loosening of yield curve controls will be a further drain on global liquidity.