Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

'Must-read, must-follow, one of the finest property analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for in-depth analysis' - David Scutt, Business Insider.

"I've been investing 40 years yet I still learned new concepts; one of the finest young commentators" - Michael Yardney, Amazon #1 bestseller.

'The most knowledgeable person on Aussie real estate - loads of good data & charts, the most comprehensive analyst I follow in Australia...follow Pete Wargent' - Jonathan Tepper, Variant Perception, 2 x NYT bestseller.

'Superlative work' - Grant Williams, founder RealVision.

Sunday, 2 July 2017

Iron ore bounces 22pc

Dirt rally

Something of an upside surprise given recently reported record high Chinese port inventory levels. 

Yet Australia's most valuable commodity has notched up a welcome 11 gains from the last 12 trading sessions, in doing so rising by nearly 22 per cent from its recent nadir.

The 62% Fines Fe benchmark iron ore spot price closed out the financial year a little under 17 per cent higher at US$64.71/tonne.


A recent speech by the Chinese Premier Li Keqiang may in part account for the magnitude of the rebound. 

The best explanatory commentary, as ever, can be found here at Business Insider. 


Leia's paradox

The Aussie dollar remains rather too high for comfort, trading at just under 77 US cents. 

But, then again, can that really be a surprise when ex-RBA Board Members are publicly anticipating a tightening cycle which could start soon and may be neither gentle nor gradual?

For the record, Bloomberg's recent survey of economists reported a median result of the cash rate staying flat at 1.50 per cent over the year to June 2018, with several forecasting houses still anticipating further cuts.