It certainly has been a great day for investors with exposure to the resources sector and the iron ore miners in particular.
At the time of writing this is the state of play in the iron ore industry:
- The BHP Billiton Limited (ASX: BHP) share price is 2.2% higher to $30.34.
- The Fortescue Metals Group Limited (ASX: FMG) share price has climbed 2.2% to $5.04.
- The Rio Tinto Limited (ASX: RIO) share price is up 2.1% to $78.11.
What happened?
Overnight the US-listed shares of BHP Billiton and Rio Tinto rose over 3% as US investors fought to get hold of the mining giants following positive economic data out of China.
Strong manufacturing and services data released yesterday appears to have many believing that Chinese economic growth will remain strong in 2018, backing up bullish forecasts for commodity prices.
The iron miners were also given a boost from a rise in the iron ore price. The benchmark 62% fines climbed 3.5% to US$73.90 overnight.
It hasn't just been the iron ore miners climbing higher. Shares including South32 Ltd (ASX: S32), Sims Metal Management Ltd (ASX: SGM), and Western Areas Ltd (ASX: WSA) have all made notable gains since the release of the data.
Which shares should you buy?
Of all the shares mentioned above, my favourites remain BHP Billiton and Western Areas. I think these two are best-positioned of the group to outperform this year and are still good value despite their recent charge higher.
