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.
Today BHP cratered below its $36.45 strong support that survived being tested the past 4 times, as I write it is now at $36.22 down 3% and does not portend well for the indices going forwards. BHP started the year around the $32 mark and could well go back down to that level or even below $30 if China suffers great impact from the present economic headwinds.
