When iron ore gets smoked it’s almost a certainty it’s going to be a tough day on the Australian stock market – especially for the pure play commodity miners.
Overnight iron ore’s December futures contract fell $3.02 a tonne to $70.94. All the crushing details are here.
Today, Fortescue shares are off more than 8.42% to $2.72. It’s the second day of selling for the miner – on Tuesday the company closed down more than 6.5% to $2.97 a piece.
The miner, which is closely tied to the iron ore price because of its pure play status, hasn’t traded that low since mid-2009 and it’s down more than 50% since January.
Here’s the chart.