The Australian – CMC Markets senior dealer Matthew Lewis said base metals were hammered in New York and London overnight on Wednesday as hedge funds liquidated their holdings.

"There is growing concern about the slowing of global growth and the impact that will have on base metals demand," he said.

"Junior iron ore explorers have been really hurt, which has been directly linked to concerns that China’s steel mills may reduce intake by up to 20 per cent.

"Plus, the short-term strength in the US dollar will hamper any bounce in metals."

Read Complete Article

Tags: 29-april, agricultural-commodities, corp-ltd, feedback-loop, finance, lu, term-trend

News.com.au- Iron ore tycoon Andrew Forrest is under attack from international hedge funds in a co-ordinated short-selling blitz against his Fortescue Metals Group — a campaign that has caused the company’s stock, and the executive’s paper fortune, to slump by more than 37 per cent in just over a month.

The company’s broker, Southern Cross Equities, has sent a note to clients that leaves no doubt as to why it considers the stock has fallen: "FMG shares have been subject to an aggressive and co-ordinated shorting campaign from a high of $13.15."

The stock went as low as $7.91 on Tuesday but by Thursday had rebounded to a $8.70 close on a day of particularly heavy trading, with 45.5 million shares going through.

Read Complete Article

Tags: asian-equities, business-models, corp-ltd, march-17, market-rumours, stocks, town-hall, upfront

Sydney Morning Herald- The ownership structure of some of Australia’s largest mining companies could be set for a major change after New York hedge fund Harbinger Capital Partners has indicated it believes commodities prices could be nearing their peak.

Harbinger, which has substantial stakes in Australian miners Fortescue Metals, Murchison Metals, Midwest and Moly Mines, has emerged as an opponent of US iron ore miner Cleveland-Cliffs’ proposed $US10 billion acquisition of coalminer Alpha Natural Resources.

Cliffs – which has an 85 per cent stake in West Australian iron ore miner Portman Mining – wants to merge with Alpha to form a more diversified supplier to the steel industry. But Harbinger, which owns 18.4 per cent of Cliffs, has told the US Securities and Exchange Commission it believes the deal is "not in the best interest of shareholders".

Read Complete Article

Tags: corp-ltd, financial-contagion, independent-companies, managment-corporation, mistrust, new-marketplace, oracle, takeover, time-zones