Shares in BHP Group Ltd (ASX: BHP) are walking higher today and are now trading 1.3% in the green at $53.18 apiece.
Today’s jump takes the gains for the miner for the past six months to 36%. Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) has jumped just over 2.5%.
What’s up with the BHP share price?
There’s been nothing out of BHP’s camp today attributable to its share price gain. However, the S&P/ASX 200 Materials Index (ASX: XMJ) has jumped 11% in the past month, making it a leading sector.
In fact, BHP’s share price tends to track the materials index very closely, as shown on the chart below for the past six months.
With the materials index roaring higher in 2022, BHP is following suit in remarkably similar fashion.
So with a gain in the sector today, it’s not surprising to see a corresponding gain in the BHP’s share price.
Aside from that, shares of Australian iron ore miners are set to surge “after Chinese data showed the need for more stimulus to offset economic headwinds”, Bloomberg News reports today.
“China’s economy grew faster than expected in the first quarter, but activity data for March pointed to rising pressure as the country fights Covid outbreaks,” it said.
This could be a bullish sign as traders already begin to place wagers on the chance of more monetary stimulus coming out of China, it says.
Eight analysts are saying to buy BHP right now, with 13 at a hold and four saying to sell, according to Bloomberg data.
The consensus price target is $48.87 per share from this list.
In the past 12 months, the BHP share price has surged 12%. It has also gained 25% this year to date. That’s on the back of a 15% jump in the past month.
The post What’s boosting the BHP share price today? appeared first on The Motley Fool Australia.
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More reading
- 2 ASX 200 dividend giants named as buys by brokers
- The BHP share price has had a stellar start to the year. Is it just the beginning?
- How ASX dividend shares can provide support through periods of uncertainty
- Own BHP shares? Here’s why the miner could be gearing up to offload more carbon-heavy projects
- Here are the top 10 ASX mining companies by market cap
Motley Fool contributor Zach Bristow 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 Bruce Jackson.
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