https://tradingeconomics.com/commodity/iron-ore
Iron ore prices which had been on a tear since the start of the year , has plunged 22% from USD120/t to USD94/ton since 31 July 2019, the start of the recent fall in equity markets following concerns over the yuan reset. I would imagine the Chinese would not be thinking this is great opportune time yet to start buying loads of ore more than has been committed - no one can figure out where this trade dispute is leading to and in the face of such uncertainty, people just sit tight and some companies may just be prepared to take the present price and not waiting for a lower price to eventuate.
Reflecting this, the prices of BHP and FMG has also fallen, now about to test important supports- for BHP thats about $36.45 only 1.2% away and for FMG thats about 4% away. Whatever hits China hits commodity prices and with banking stock margins to face more margin pressures from further interest rate drops, it is difficult to see where the ASX can find gainers to lift itself.
This week we may just be muddling through is my guess, largely sideways and losing interest with a wait and see attitude ; could turn out to be the calm before the storm. This period I reckon is a good time to reduce exposure is my take while some profits are there to be taken.
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