As mentioned yesterday resource stocks are expected to bear the heavier brunt of this downdraft and we saw that today with BHP , Rio and FMG down by 2.89pc, 2.48pc and 4pc respectively and this is just the beginning of the new down trend - as BHP ceo admits the golden era for mining and iron ore in particular has come to an end. Gold held reasonably well despite equities recovering and while the gold major lost some ground , junior gold stocks lie BC8 and CHN are doing great guns with the former hitting record high earlier this morning.
Most of the Opportunity Stocks did also display resilience despite microcaps losing steam since the end of July.
More worryingly, the ASX now seems to be more downbeat than US markets - perhaps it's back focussing on China and its potential impact on our business fortunes going forwards. I expect the two steps forwards one step back or two steps back one step forward type of market direction in the US to persist a little longer until we hear what Fed chief Jerome Powell has to say pretty soon. At the moment we are in transition , the key question is when will we next see a clearer determination of the next direction from here.
