Rio Tinto share price sinks on iron ore weakness

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.

The Rio Tinto Limited (ASX: RIO) share price has started the week deep in the red.

In afternoon trade, the mining giant’s shares are down 4.5% to $102.13.

Why is the Rio Tinto share price falling?

Investors have been selling down the Rio Tinto share price on Monday following a pullback in commodity prices.

For example, according to Bloomberg, a host of base metals dropped on Friday night. This includes an almost 7% decline for the iron ore price and a 2.5% decline for the copper price.

These declines appear to have been sparked by fears that rising rates could lead to a global recession and reduce demand for base metals.

This news isn’t just impacting Rio Tinto. Fellow miners BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) have also taken a tumble today. They are down 5% and 7%, respectively, at the time of writing.

All in all, this has led to the S&P/ASX 200 Resources index losing a disappointing 4.6% of its value today. This compares unfavourably to a 0.4% decline by the benchmark ASX 200 index.

All eyes will be on iron ore and other base metals when the London Metal Exchange opens later today.

The post Rio Tinto share price sinks on iron ore weakness appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

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.

from The Motley Fool Australia https://ift.tt/DE4TflN

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s