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.
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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.
