The BHP Group Ltd (ASX: BHP) share price has come under significant pressure on Tuesday.
In morning trade, the mining giantâs shares are down over 6% to $43.16.
Why is the BHP share price sinking?
Investors have been selling down the BHP share price following a horror start to the week for the local share market. In early trade, the benchmark ASX 200 index was down over 5% amid broad market weakness.
The catalyst for this has been a selloff on Wall Street on Friday and Monday, which saw BHPâs NYSE listed shares lose almost 7% of their value over the two trading session.
This has been driven by higher than expected US inflation data, which has sparked fears that the US Federal Reserve will be forced to increase interest rates at a quicker than anticipated rate to tame inflation. If this is the case, thereâs a real possibility of it causing a recession in the United States.
Combined with similar central bank action across the globe, there are concerns that the global economy could also fall into a recession. This could impact demand for commodities, which led to a range of base metals taking a tumble overnight and has not helped the BHP share price today.
The post Why is the BHP share price sinking 6% today? appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Tuesday
- Brokers name 2 ASX 200 dividend shares to buy with big fully franked yields
- Is the BHP share price really trading on an 11% dividend yield right now?
- How is the BHP share price performing so far in June?
- 5 things to watch on the ASX 200 on Thursday
Motley Fool contributor James Mickleboro 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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