Why BHP’s Share Price Is Down Today

At time of writing, BHP Billiton Limited [ASX:BHP] is down 1.4%, along with other major miners, Rio Tinto Limited [ASX:RIO], South32 Limited [ASX:S32] and Fortescue Metals Group Limited [ASX:FMG].

It’s currently trading at $31.76.

BHP recently announced the sale of its US shale business to BP.

As you can see, BHP’s share price has been volatile over the past three months:

BHP Share Price

Source: marketindex.com.au

If you’re interested in which ASX mining stocks are worth keeping an eye on, check out our analyst Jason Stevenson’s free report here.

BHP share price down as fears mount over iron ore rally

The benchmark spot price of 62% fines rose .3% to $76.71, to cap off a 10.8% rally since October 5.

However, Chinese steel futures are set to fall heavily as the Chinese economy’s growth starts to taper off.

This could have an impact on iron ore prices going forward.

The ongoing trade war continues to weigh heavily on Chinese investors’ minds.

Since the start of 2018, Chinese stocks have lost more than 30% of their value, in perhaps the biggest story of the year.

Could a trade deal help BHP’s share price gain ground?

The news coming out of the Whitehouse is beginning to look more positive in recent days.

In a recent interview, Trump said ‘I can make a deal right now, I just say they’re not ready.’

But the likelihood of a deal is still unclear, with the President also saying that ‘I have US$267 billion [in tariffs] waiting to go if we can’t make a deal.’

BHP and the other major miners rely heavily on a thriving Chinese economy which relies heavily on their iron ore to make steel.

Recently, the major miners share price has been buoyed by the prospect of a Chinese stimulus plan.

Regards,

Ryan Clarkson-Ledward,
For Markets & Money

PS: Get a great list of 10 mining stocks that our resource analyst Jason Stevenson thinks are set for a strong year. It’s available for free here.


Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


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