ASX 200 iron ore miners rally as market rebounds on Tuesday

The ASX 200 iron ore miners are racing ahead today following a rebound across the broader market.

Yesterday, the S&P/ASX 200 Index (ASX: XJO) fell 1.60% as investors fled for safe-haven assets such as US treasury bonds.

That brought losses on the ASX to around 5% over the last 3 days, signalling the biggest fall since June.

However, it appears the market is taking a breather with a number of popular ASX shares in the green.

Let’s take a look at how the big miners are performing today.

ASX 200 iron ore miners make a comeback

There are a couple of reasons why shares in the ASX 200 iron ore miners are heading north today despite no company announcements.

The S&P/ASX 200 Resources (ASX: XJR) sector is the best performer across the ASX today with a 2.06% gain.

This has catapulted shares in BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) to climb 2.18%, 2.5% and 3.39% respectively.

The strong turnaround for the benchmark index of Australian resource companies comes after falling a mammoth 5.88% yesterday.

Recently, bearish sentiment impacted global markets following the 75-basis points rate hike by the US Fed and concerns about a looming recession.

However, those worries have since been alleviated for now as a number of blue-chip shares are trading in bargain territory.

For example, BHP and Fortescue shares are entering near year-to-date lows, while Rio Tinto is closing in on its 52-week lows.

Furthermore, the price of iron ore appears to have found the bottom at roughly US$100 per tonne.

This comes as China’s previous extended stimulus package is now paying dividends to its ailing construction and manufacturing sectors.

The Asian powerhouse added more than 1 trillion yuan (US$146 billion) of stimulus to fight against its slowing economy.

As reported by Trading Economics, the steel-making ingredient is currently fetching at US$99.50 a tonne.

The post ASX 200 iron ore miners rally as market rebounds on Tuesday appeared first on The Motley Fool Australia.

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More reading

• The Fortescue share price is handily beating the ASX 200 today
• Down 14% in a month, what’s next for the BHP share price?
• 5 things to watch on the ASX 200 on Tuesday
• Why BHP, Costa, Link, and Syrah shares are dropping
• Why is the Rio Tinto share price rolling 5% lower on Monday?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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