Resources have been the big outperformers since the global bull market got underway in early 2016. Since those lows, BHP’s share price has soared nearly 130% (to the January 2018 peak), while RIO’s isn’t far behind, up just over 126%.
Australia, as an investment destination, suffers from an increase in risk perceptions. Foreign capital is less willing to invest here, or buy debt issued by the banks to fund the mortgages of Aussie battlers. As a result, the Aussie dollar falls. However, the ‘magic’ of a falling dollar is that it increases the purchasing power of foreign currency.
BHP Billiton is planning to cut costs big-time over the next two years. The mining giant aims to save $2.2 billion, which would mean a 10% cut to unit costs across the board.
Iron ore rallied in July and August. Yet it has plummeted in the last few weeks after fears that the crack-down on pollution could affect both supply and demand of the iron ore market.
This morning, BHP Billiton Ltd [ASX:BHP] fell 2.2% to $26.68 per share. BHP isn’t the only miner down today. Rio Tinto Ltd [ASX:RIO] and Fortescue Metals Group [ASX:FMG] also traded lower, down 1.6% and 1.5% respectively.
Hurricane Harvey is the latest of the many setbacks to hit BHP’s US shale assets. The company has finally decided to sell its onshore US shale assets after pressure from shareholders.
The miner released positive results this morning. Full year underlying earnings were up were up 730% to $1.15 billion. Revenues also jumped 20% to $6.95 billion.
Tomorrow, all eyes will be on BHP Billiton Ltd [ASX:BHP] as it releases its preliminary results for 2017.
Shares of Fortescue Metals Group [ASX:FMG] have jumped almost 14% in the past month, moving closer to the crucial $7 mark.
This morning, BHP Billiton Ltd [ASX:BHP] dropped as much as 1.9%, to $25.62 per share. Why did the BHP share price drop?