BHP and Rio Tinto shares slide as iron ore futures decline
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The news: Iron ore miners were among the biggest losers on the ASX in morning trade as iron ore index futures declined on the Singapore exchange.
The numbers: Shares in Rio Tinto were down 1.6% to $113.59 at midday AEST, while shares in BHP had slipped 1.2% to $42.67.
Fortescue shares, trading ex-dividend, were 5.2% lower at $18.29.
The iron ore index futures on the Singapore exchange dropped 1.8% to USD101.60 ($155.41).
The context: The iron ore index futures posted its second consecutive monthly gain in August.
On Sunday, China’s National Bureau of Statistics reported that manufacturing activity remained in contraction in August.
The manufacturing purchasing managers’ index came in at 49.4 for August compared to 49.3 in July. An index reading below 50 indicates contraction.
The sources: Bloomberg, Bloomberg , National Bureau of Statistics of China
