Australian miners and the PBOC

I mentioned on Friday that the ASX 300 Metals & Mining Index is falling, with declining Twiggs Money Flow warning of long-term selling pressure.

ASX 300 Metals & Mining

The reason is not hard to find. China’s PBOC is tightening monetary policy to force a slow-down in real estate and construction. Money supply (M1) growth contracted over the last 6 months, with a sharp drop in January 2017.

ASX 300 Metals & Mining

Bulk commodity prices are expected to ease.

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