US stocks fell overnight, ignoring some solid earnings numbers as macroeconomic and geopolitical fears continue to dominate risk assets. United Airlines (UAL US) was a standout winner, surging more than 17% after beating on revenue, but elsewhere, the market had a cautionary feel about it, with rate-sensitive stocks continuing to underperform. The market corrected around 500-points in mid-2023, so far in 2024, we’ve only experienced about half of this; hence, we must be open-minded to a deeper pullback.
- We can see the current pullback extending further, especially with May looming, but we remain buyers of dips.
MM remains cautiously bullish towards US stocks
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Iron Ore popped +3.6% in the last 24 hours, helping BHP rally almost $1 in the US last night while likes of RIO Tinto (RIO) and Mineral Resources (MIN) are likely to follow this morning. The last 24 hours have seen Joe Biden triple tariffs on Chinese steel and aluminium, plus China’s GDP grow faster than expected, both tailwinds for the bulk commodity. However, the move by the US President feels politically motivated because Chinese steel accounts for only 1% of America’s domestic supply!
- We continue to like the risk/reward towards iron ore stocks courtesy of an overly bearish market.
MM is cautiously bullish towards iron ore through 2024
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