Why is the Sayona Mining share price tumbling 6% on Wednesday?

The Sayona Mining Ltd (ASX: SYA) share price is on the move in early trade on Wednesday with no news.

At the time of writing, shares in the lithium-focused metals explorer are swapping hands 5.63% lower at 33.5 cents apiece.

What’s up with the Sayona Mining share price?

Whilst there’s been nothing price sensitive out of Sayona’s camp this morning, a broad sell-off in US stocks overnight, following higher than expected inflation data, has pulled through to the Australian session.

An impulse of risk-off sentiment is being felt across all ASX sectors today following the readouts, which saw core CPI above forecasts, but headline inflation falling within the projected range.

With the hot-running inflation still a priority, the CPI print implies we are in for more interest rate hikes as central banks look to tackle the inflation issue.

The result saw the collective US market’s biggest 1-day drop since June 2020 – a move seen right in the midst of the Coronavirus pandemic.

“The Fed has increased [rates] by a full 3 percentage points in the last 6 months…We have not yet felt the full impact of all those increases,” Paul Nolte of Kingsview Asset Management said in a note to clients.

“But we will” he added. “We are at a recession’s Doorstep”.

The downside has already been realised from the opening bell on Wednesday here on the ASX, with shares like Sayona Mining taking a hit from the get-go.

Trading volume in Sayona has already crept past 31% of the 4-week average of 80.66 million shares, and the price action is bearish for the share in early trade this morning.

Checking a heat map of the Australian benchmark indices, there’s an abundance of red, suggesting it’s going to be a tough day for Aussie markets.

The Sayona Mining share price is up 158% this year to date.

The post Why is the Sayona Mining share price tumbling 6% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Investors are obsessed with ASX lithium shares, but what about this other critical battery metal?
• Why is the Sayona Mining share price soaring 8% on Monday?
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• Why did the Sayona Mining share price shoot 6% higher today?

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 Scott Phillips.

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