We turn our attention to the resources sector. If the market in general has been a rollercoaster for the past week, the resources sector looks as though it has been subjected to tag-team wrestling bout.
In the corner against it there is a slowing US economy being partnered by an easing of demand from China - and they’re looking pretty mean at the moment. In its own corner it has the falling Aussie dollar trying to urge it on - “You don’t need to sell as much because I’ve fallen against the Greenback, just make sure you stay on your feet.”
Rio Tinto CEO Tom Albanese has said that the company won’t be materially affected by a softening of demand from China. He said, “In this environment, until we see fourth quarter steel production pick-up, which we haven’t - we’re just two weeks into the month but we are beginning to see the stocks working down - they will be looking hard at their overall iron ore imports.”
