ASX Large Caps: Iron ore stocks pare gains as China clamps down; Fedspeak in focus tonight

• The ASX down by 0.30% on Tuesday
• Iron ore miners pare gains as China clamps down on speculation
• Jerome Powell will speak tonight

The ASX 200 lost 0.30% on Tuesday as the biggest three sectors – Energy, Mining and Financial – took a tumble.

Iron ore miners in particular pared early gains as Chinese regulators ramped up their efforts to clamp down on speculators.

The Chinese National Development and Reform Commission has said it was highly concerned about fluctuations in iron ore prices after the recent sharp rise.

Navigate Commodities Managing Director, Atilla Widnell, reckons iron ore futures “have dislocated from physical supply and demand”.

“One can understand the reason why it’s frustrating for the government, given that (high prices) increase costs for integrated steel producers and downstream end users i.e. property developers,” said Widnell.

The ANZ-Roy Morgan Consumer Confidence index jumped 4.9% to 87.4 , the first time ever it has risen at the start of a year since 2018.

In the big scheme of things, 87.4 is still a low number given that the monthly average since 1990 is 111.7. Anything below 100 is considered to be a negative outlook.

“While homeowners paying off mortgages are still reporting lower confidence than renters and outright owners, average confidence among all three groups rose in the new year,” said ANZ senior economist, Adelaide Timbrell.

Overnight, President of the Atlanta Fed Reserve Raphael Bostic put the case for interest rate speculation, tipping a 0.25% – 0.50% interest rate increase at the 1 February policy meeting, and an overall 0.75% increase for the year.

“We are just going to have to hold our resolve,” Bostic said.

Meanwhile, Energy and Climate Minister Chris Bowen said on Tuesday that the country’s 200 biggest emitters would have to cut their emissions by 5% each to 2030 to help reach Australia’s target.

According to the Australian Conservation Foundation via the AFR, more than half of the emissions since 2016 have been produced by 10 companies: Rio Tinto, Chevron, Woodside, Santos, Anglo American, BlueScope Steel, BHP, South32, Glencore and the Gupta family’s mining company.

To cryptos, FTX’s former engineering chief Nishad Singh has met with US federal prosecutors in a bid to seek a deal in the collapse of FTX.

Looking ahead to tonight’s session, investors will be glued to words from Fed boss Jerome Powell who is due to speak.

BIG CAP WINNERS

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Carsales.com (ASX:CAR) rose 2% ahead of the release of its half year results on February 13th.

Polynovo (ASX:PNV) rose 8% on no specific news.

BIG CAP LOSERS

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Arafura Rare Earths (ASX:ARU) dropped 10% on no specific news.