S&P/ASX 200 Index (ASX: XJO) mining shares have broadly underperformed the benchmark index this week.

The ASX 200 is up 1% since the opening bell on Monday.

The S&P/ASX 300 Metals & Mining Index (ASX: XMM), which includes some companies outside of ASX 200 mining shares, is down 4%.

And the pain has been felt across the sector, regardless of the metals the miners are most focused on.

Here’s how some of the biggest ASX 200 mining shares by market cap have performed so far this week:

• Rio Tinto Limited (ASX: RIO) share price is down 2.9%
• BHP Group Limited (ASX: BHP) share price is down 4.7%
• Fortescue Metals Group Limited (ASX: FMG) share price is down 4.9%
• Mineral Resources Limited (ASX: MIN) share price is down 6.6%
• Newcrest Mining Ltd (ASX: NCM) share price is down 5.0%

ASX 200 mining shares pressured by economic growth outlooks

Whether they’re predominantly after iron ore, gold, copper, lithium or a range of other metals, ASX 200 mining shares have seen the price of those metals drop this week.

There are a number of factors at work here.

First, despite promises of more economic stimulus from the Chinese government, investors are concerned the Middle Kingdom won’t achieve its growth targets this year. As the world’s top importer of iron ore, and chief market for Aussie exports, this has seen the price of the industrial metal slide this week, despite an overnight bump.

Recession fears

Increasing jitters about the likelihood of a recession in the United States is also putting pressure on base metal prices and by extension ASX 200 mining shares. Should the world’s largest economy slip into a recession, the effects will likely be felt across much of the globe.

Copper prices this week were indicative of those recessionary fears.

You may have heard of copper referred to as ‘doctor copper’. That’s because copper is widely used in a range of construction and manufacturing activities. When the global economy is growing, demand for copper follows suit and prices rise. The same works in reverse.

And the copper price has slipped 7% since Monday, trading at its lowest level since February 2021.

The post Why are ASX 200 mining shares having such a dire week? appeared first on The Motley Fool Australia.

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More reading

• Own BHP shares? ‘Almost unbelievable’ breakthrough could be key to miner’s climate strategy
• Here’s the BHP dividend forecast through to 2024
• 5 things to watch on the ASX 200 on Friday
• Why did the Mineral Resources share price tumble on Thursday?
• Here’s why the BHP share price is in the red today

Motley Fool contributor Bernd Struben 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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The Kogan.com Ltd (ASX: KGN) share price is having a long-awaited positive day.

After reaching another multi-year low this week, the ecommerce company’s shares are rebounding strongly on Friday.

At the time of writing, the Kogan share price is up almost 12% to $3.15.

Why is the Kogan share price storming higher?

The driver of today’s gain has been a bit of a mystery. However, it is worth noting that Kogan is not alone in recording strong gains.

In fact, most beaten down ecommerce and tech shares are rising equally strongly at the time of writing. Here’s a quick summary of some of the highlights:

• The Life360 Inc (ASX: 360) share price is up 15%.
• The Redbubble Ltd (ASX: RBL) share price has jumped 8%.
• The Temple & Webster Group Ltd (ASX: TPW) share price is up 9%.
• The Zip Co Ltd (ASX: ZIP) share price has stormed 13% higher.

This has led to the S&P ASX All Technology index rising 4.5% this afternoon, which is significantly better than the ASX 200 index and its 0.4% gain.

It appears as though investors believe that the tech sector has been oversold and has created a buying opportunity.

Time will tell if the sector has bottomed or if this is a dead cat bounce.

The post Why is the Kogan share price jumping 12%? appeared first on The Motley Fool Australia.

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• Why is the Kogan share price soaring 6% on Monday?
• These are the 10 most shorted ASX shares
• Why the Adore Beauty share price is jumping but Kogan is falling
• This top broker thinks the Kogan share price has 35% upside
• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com ltd, Life360, Inc., REDBUBBLE FPO, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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The S&P/ASX 200 Index (ASX: XJO) has had a rather topsy-turvy start to the final trading day of the week. The ASX 200 plunged soon after open but has since rebounded. It currently remains up by around 0.26% at just over 6,540 points. But it’s a different story when it comes to ASX tech shares today.

ASX tech shares are among some of the ASX’s best performers today. Not only is tech currently the best-performing ASX sector on the markets, but some individual tech shares are topping the best-performing shares so far today.

Take Block Inc (ASX: SQ2) shares. They are currently up a healthy 9.63% at $97.34 each. Or Zip Co Ltd (ASX: ZIP), up 13.64% at 50 cents a share. Life360 Inc (ASX: 360) is leading the sector with its gain of 14.11% to $2.75 a share. Appen Ltd (ASX: APX) is up 5.69%, while WiseTech Global Ltd (ASX: WTC) has risen 4.68%.

So what’s behind this breakaway performance from ASX tech shares today?

Well, a significant factor could be the performance of the US markets last night (our time).

Overall, US shares had a day of mild gains, with the Dow Jones Industrial Average Index (DJX: .DJI) rising by 0.64%. But US tech shares led the gains. Even though the Dow only rose by 0.64%, the tech-heavy NASDAQ-100 (NASDAQ: NDX) was up a far healthier 1.47%.

Are US tech shares leading ASX tech shares higher?

Many US tech shares rocketed in last night’s session. Apple Inc (NASDAQ: AAPL) rose by 2.16%. Microsoft Corporation (NASDAQ: MSFT) was up 2.26%, while Amazon.com Inc (NASDAQ: AMZN) was up by 3.2%. Block’s US listing – Block Inc (NYSE: SQ) – was up almost 11%.

These moves followed some new comments from US Federal Reserve chair Jerome Powell. Powell was speaking in front of the US Senate’s Committee on Banking, Housing, and Urban Affairs. Here’s some of what he said:

Making appropriate monetary policy in this uncertain environment requires a recognition that the economy often evolves in unexpected ways. Inflation has obviously surprised to the upside over the past year, and further surprises could be in store.

We therefore will need to be nimble in responding to incoming data and the evolving outlook. And we will strive to avoid adding uncertainty in what is already an extraordinarily challenging and uncertain time.

We are highly attentive to inflation risks and determined to take the measures necessary to restore price stability. The American economy is very strong and well positioned to handle tighter monetary policy.

This statement may have spurred the rises we saw in US tech shares last night. It certainly did nothing to harm investors’ mood anyway.

So ASX tech shares seem to be following the leads of their US counterparts on the markets today. This is not unusual – we often see a tight correlation between the two markets’ tech sectors.

No doubt these moves in ASX tech shares today will be met with some relief from investors, given the painful week or two we have just witnessed.

The post Why ASX 200 tech shares are outperforming the market on Friday appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Qantas’ market update, lithium shares rebound
• Block share price jumps 9% following Cathie Wood investment
• Why Cooper Energy, Lake Resources, Leo Lithium, and Zip shares are sinking
• Why ANZ, Block, Bubs, and PayGroup shares are pushing higher
• Block shares are back on the buy list for this big-name investor

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Block, Inc., and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Appen Ltd, Apple, Block, Inc., Life360, Inc., Microsoft, WiseTech Global, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block, Inc. and WiseTech Global. The Motley Fool Australia has recommended Amazon and Apple. 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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The Woodside Energy Group Ltd (ASX: WDS) share price has started the day 2% lower and is now trading at $30.43.

Investors have pushed the Woodside share price lower today on no news.

In broad market moves, the S&P/ASX 200 Energy Index (ASX: XEJ) has also slipped around 1.5% into the red in early trade.

What’s up with the Woodside share price?

The price of oil has been volatile in recent weeks after surging back up to multi-year highs on 8 June.

It has since consolidated back to a key support level. Multiple forces have been acting on oil dating back to the start of the European conflict.

This has resulted in volatility in the second quarter, with traders now paying a premium for the black gold – the highest in years.

Brent crude oil now trades at US$110 per barrel, down from a high of US$124 per barrel.

But the upside certainly hasn’t been a bad thing for the Woodside share price.

Alongside the oil price, Woodside has snaked its way higher since December 2021 as well.

Shareholders have enjoyed a tidy return in 2022 from the company, with Woodside clipping a 39% gain since trading resumed in January.

Meanwhile, broad equity markets continue to struggle, as the commodity trade continues to wind on.

The returns of the benchmark against the Woodside share price and oil are plotted on the chart below.

In the last 12 months, Woodside has booked a 35% gain, after spiking another 5% this past month of trade.

The post What’s going on with the Woodside Energy share price today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Why we just bought these 3 ASX shares: fund
• 5 things to watch on the ASX 200 on Thursday
• Woodside share price lifts despite $17b ‘climate bomb’ court action
• Why did the Woodside share price surge ahead on Tuesday?

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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. The benchmark index is currently up 0.25% to 6,544.6 points.

Here’s what is happening on the ASX 200 today:

Qantas market update

The Qantas Airways Limited (ASX: QAN) share price is trading higher today after the airline operator released a market update. That update reveals that Qantas is on track to achieve second half underlying EBITDA of between $450 million to $550 million. Management also advised that it is cutting domestic capacity to help offset rising fuel costs.

Lithium miners rally

The lithium industry is rebounding on Friday with strong gains being recorded from the likes of Lake Resources N.L. (ASX: LKE) and Pilbara Minerals Ltd (ASX: PLS). This follows news that lithium developer Vulcan Energy Resources Ltd (ASX: VUL) has received an investment from a major automaker at a massive 32% premium to its last close price.

Tech shares rebound

Also performing strongly today has been the tech sector. A number of beaten down tech shares are rebounding such as Life360 Inc (ASX: 360) and even the unloved Zip Co Ltd (ASX: ZIP). This has led to the S&P ASX All Technology index rise 4.4% at the time of writing.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Lake Resources share price with a 20% gain. This follows a rebound in the lithium industry after some very big falls this week. Going the other way, the worst performer has been the Viva Energy Group Ltd (ASX: VEA) share price with a 3.5% decline on no news.

The post ASX 200 midday update: Qantas’ market update, lithium shares rebound appeared first on The Motley Fool Australia.

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More reading

• Qantas share price takes off following market update
• 5 things to watch on the ASX 200 on Friday
• Could ASX lithium shares be set for a boost?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Cooper Energy, Lake Resources, Leo Lithium, and Zip shares are sinking

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and ZIPCOLTD FPO. 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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The BWX Ltd (ASX: BWX) share price won’t be going anywhere today.

This comes after the company requested its shares be placed in a trading halt before market open.

For now, shares in the personal care products company are frozen at $1.17 apiece.

It’s worth noting that BWX shares hit an all-time low of $1.08 last week despite posting a small rebound recently.

Why is the BWX share price halted?

Prior to the opening bell, the company requested the BWX share price be halted while it prepares an announcement.

According to the release, the company is planning to make a statement relating to a trading update.

BWX has requested that the trading halt remains in place until Tuesday 28 June or when the announcement is made, whichever comes first.

More on the trading halt

While no further details have been given by BWX, The Australian shed more light on what could be ahead for the company.

According to the publication, BWX is preparing to notify the ASX of a profit downgrade along with a potential capital raise.

The news comes a week after Tattarang Ventures made a strategic investment in BWX and now holds a 17% stake.

Owned by the Forrest family, namely Andrew ‘Twiggy’ Forrest, Tattarang holds an extensive investment portfolio. This includes sectors across agri-food, energy, resources, property, lifestyle, and health tech.

BWX share price snapshot

Since this time last year, BWX shares have continued to come under severe selling pressure from investors, down 78%.

In 2022, the company’s shares have fallen 73%.

Based on valuation grounds, BWX presides a market capitalisation of approximately $191.25 million.

The post Why is the BWX share price halted on Friday? appeared first on The Motley Fool Australia.

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• Brokers rate these 2 top ASX shares as buys in June 2022

Motley Fool contributor Aaron Teboneras 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 recommended BWX Limited. 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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BHP Group Ltd (ASX: BHP) shares are in the spotlight this week amid reports the S&P/ASX 200 Index (ASX: XJO) miner’s tailings dams have been soaking tens of thousands of tonnes of carbon out of the atmosphere each year.

And that could just be the tip of the carbon sink iceberg.

The findings were actually uncovered eight years ago by scientists working with Australian, Canadian and New Zealand universities.

As The Australian Financial Review reports, they discovered the sludge dam at BHP’s Mount Keith nickel mine in Western Australia was removing some 39,800 tonnes of carbon from the atmosphere annually. When the tailings, rich in magnesium, interact with the air, carbon gets locked into mineral crystals in the dam.

Somehow those findings remained largely unknown until more recently.

“It was just, almost unbelievable to me,” says BHP’s sustainability principal Samantha Langley, addressing the day she uncovered the research in 2019.

Scientists estimate that capturing carbon in this manner could store more than 1% of global emissions annually.

BHP shares could get a lift from mineral carbonation method

BHP shares could be in for some tailwinds should the miner receive credits for the carbon its tailings dams remove from the air.

BHP shareholders are now waiting on the Clean Energy Regulator’s decision on whether Australian Carbon Credit Units can be awarded for storing carbon in minerals.

At the moment, the miner still can’t count the carbon its dams are pulling from the atmosphere when calculating its total emissions footprint, and it’s not eligible for carbon credits, currently worth some $32 per tonne.

According to Langley (quoted by the AFR):

Before BHP or anyone else can register a mineral carbonation project for carbon offsets and be able to commercialise the opportunity, we need a mechanism and methodology for being able to account for the carbon storage and to verify the amount of carbon that’s been stored.

BHP is currently working with others in industry, policy experts, research teams, governments and voluntary carbon offset schemes as well to support the development of a new method.

A Clean Energy Regulator spokesman indicated BHP shareholders can expect that method to be finalised early next year:

The Clean Energy Regulator is currently developing a carbon capture, use and storage (CCUS) method. Mineral carbonation is currently being considered as a potential activity under the CCUS method. The CCUS method is due to be finalised by February 2023.

Far more carbon capture potential

BHP shares could be in for a bigger lift if the miner can optimise its tailings dams to suck more carbon from the air.

University studies suggest BHP’s Mount Keith nickel mine could soak up four million tonnes of carbon per year. That’s more than the combined emissions from its iron ore division and its Western Australia nickel division, the AFR notes.

While BHP is optimistic it can increase the carbon capture of its tailings dams, getting to those top levels is unlikely.

“The size of the prize is big,” Langley said. “We’re probably never going to get to the full four million tonnes. But we want to get close to there and we want to get as much as we can.”

How have BHP shares been tracking?

BHP shares are down 7% over the past 12 months. That compares to a full year loss of 11% posted by the ASX 200.

At the current share price, BHP pays an 11.7% trailing dividend yield, fully franked.

The post Own BHP shares? ‘Almost unbelievable’ breakthrough could be key to miner’s climate strategy appeared first on The Motley Fool Australia.

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More reading

• Here’s the BHP dividend forecast through to 2024
• Here’s why the BHP share price is in the red today
• ASX 200 midday update: Pilbara Minerals’ lithium price update, BHP tumbles
• Why we just bought these 3 ASX shares: fund
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Bernd Struben 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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The Damstra Holdings Ltd (ASX: DTC) share price is edging higher today after the company announced a deal worth $900,000 with a Canadian-listed copper miner.

The workplace management solutions company said its subsidiary, Damstra Technology, had secured a three-year contract with Pinot Valley Mining Corp. Pinot Valley, which is in Arizona, is owned by Capstone Copper Corp (TSE: CS).

The Damstra share price is currently up 1.25% 8.1 cents.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.3% at the time of writing.

Strategic value helps Damstra share price

The contract with Capstone — which has its headquarters in Canada — is estimated to be worth at least circa US$615,000 ($892,000).

Capstone will implement Damstra’s Enterprise Protection Platform (EPP) through five modules — workforce and contractor management, security, health and safety, training, and compliance and incident management.

While the total value of the contract is not considered to be material, management pointed out the strategic importance of the win.

Worth more than the monetary value

In the first instance, the ASX tech minnow is pleased that it is replacing an international competitor. Management noted the deal “helps validate the competitiveness of Damstra’s EPP on an international scale”.

Secondly, there could be an opportunity for Damstra to roll out its solution across more mine sites operated by Capstone.

Damstra’s chief executive Christian Damstra said:

What is exciting about Capstone is that it helps validate our EPP product positioning and strategy where we can offer to clients one module or, as in the case of Capstone, five modules, under the EPP where all the modules work in an integrated fashion.

How is the Damstra share price performing?

The contract win comes as the Damstra share price has shed 90% of its value over the past year. The brutal sell-off in ASX tech shares has hit smaller-cap companies harder.

Rising interest rates have forced investors to dump growth shares, and small-cap ASX tech shares are a near-perfect descriptor of this category. This explains why three-quarters of ASX tech shares have fallen by 20% or more in the past year.

Only two others have performed worse than the Damstra share price in the last 12 months — the colorTV Ltd (ASX: CTV) share price and the 3D Metalforge Ltd (ASX: 3MF) share price. Both have shed around 92% of their value.

The post What’s boosting the Damstra share price today? appeared first on The Motley Fool Australia.

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More reading

• Why is the BWX share price halted on Friday?
• Own BHP shares? ‘Almost unbelievable’ breakthrough could be key to miner’s climate strategy
• Profit Off the Bear Market With Microsoft Stock
• Why is the Evolution share price tumbling 10% so far this week?
• Block share price jumps 9% following Cathie Wood investment

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Damstra Holdings Ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

It’s official. Last week the S&P 500 joined the Nasdaq Composite and fell firmly into bear market territory, meaning it is more than 20% down from its recent high. For many investors, it’s unnerving to be in the midst of a collapsing market. It seems like every day there is doom and gloom and another “expert” with another hot take on why it’s down and when it will go back up.

What you need to know is that no one knows when the downturn will end. The best assurance we can offer is that it will end. When the bull returns, you need to be ready to take it by the horns. Long-term investors can use a bear market to their distinct advantage. After all, good investors don’t want to buy high and sell low, right?

Let’s look at the qualities you are likely to find in a down-trending stock that will help it rise again. Qualities like profits, cash flow, seasoned management, and growth opportunities all come to mind. Microsoft (NASDAQ: MSFT) has all of these in spades. 

Microsoft has seasoned management for turbulent times

Microsoft CEO Satya Nadella heads up a team that has done impressive work recently. We need only go back to March 2020 to see this leadership in action. With significant economic uncertainty, Microsoft posted record revenue and operating profits for shareholders. 

The company has built on these gains through the first three quarters of fiscal 2022 (Microsoft’s fiscal year ends in June). One of the biggest testaments to a well-run organization is its profitability. Microsoft is hugely profitable and continues to grow margins, as shown below. For comparison, Alphabet posted an operating margin of 31% in 2021 — a very successful year for the company. 

Microsoft’s management team has proven its mettle to navigate our current economic challenges.

Microsoft has its head in the clouds

Microsoft continues to dominate the software industry with its leading Office and Windows products, but its future resides in the cloud. Cloud infrastructure spending is exploding, and it is forecast to grow 20% this year, according to Gartner. Microsoft’s cloud infrastructure platform Azure is locked in a battle for supremacy with Amazon‘s AWS.

This sector is highly lucrative. Microsoft’s Azure and other cloud services segment grew an astounding 46% year over year in the last quarter to go along with the company’s server products and cloud services’ 29% growth. In total, the Intelligent Cloud revenue stream produced $54.3 billion of Microsoft’s $146.4 billion in sales through Q3 FY22. 

Another terrific quality of Microsoft is that the company never allows itself to become stagnant. Rather than be satisfied with recent results, the company announced the blockbuster acquisition of Activision Blizzard (NASDAQ: ATVI) for $69 billion earlier this year.

Activision will bring popular gaming franchises like Call of Duty, Candy Crush, and StarCraft. It will make Microsoft the third-largest gaming company by revenue if the deal receives regulatory approval. These impressive forays into cloud computing and gaming make Microsoft a leader in two more fast-growing fields.    

Microsoft is generating its cheapest valuation in years

Microsoft stock isn’t immune to the market swoon, even though its results remain stellar. The stock is down over 25% this year. This has brought the price-to-earnings (P/E) ratio down to its lowest level since the March 2020 crash and, before that, early 2019. Meanwhile, earnings continue to rise, as shown below.

MSFT PE Ratio data by YCharts

Investors can also pocket a small but growing dividend. The company’s dividend has increased annually since 2006 and is yielding around 1% at the moment. 

No stock is without risk as recession fears linger on the horizon, and Microsoft stock could continue to decline with the market. It’s unlikely to catch a stock at its lowest price; predicting this accurately is nearly impossible. An incremental buying strategy, like dollar-cost averaging, is an excellent way to mitigate short-term market risk. 

Microsoft has all the qualities investors look for in a long-term winner and is firing on all cylinders. The stock has rewarded long-term shareholders for years, which appears ready to continue once the bear goes back into hibernation. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Profit Off the Bear Market With Microsoft Stock appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bradley Guichard has positions in Alphabet (C shares), Amazon, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, and Microsoft. The Motley Fool Australia has recommended Activision Blizzard, Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Evolution Mining Ltd (ASX: EVN) share price has tracked south this week, extending losses for the year to date.

At the time of writing, the Evolution share price is resting at $3.39 apiece on Friday.

In broad market moves, the benchmark S&P/ASX 200 Index (ASX: XJO) trades 19 basis points lower at the open on Friday at 6,516.

What’s up with the Evolution share price?

Gold has weakened again with the yellow metal giving back recent gains to continue its sideways movement.

It has been volatile in recent times amid recession fears and shifting treasury yields. Prices haven’t nudged past the US$1,870 per ounce mark since 6 May.

It now trades at US$1,824 per troy ounce, around 69 basis points down on the session.

Zooming out, it now trades back in line with longer-term support levels. It has fallen from a 19 April high of US$2,052 per troy ounce, as seen below, along with the Evolution share price.

Aside from that, mining shares continue to soften on the whole with the S&P/ASX 300 Metals and Mining Index (ASX: XMM) sliding from its previous high on 8 June at rapid pace.

Investors have sold off cash flow rich mining stocks in tandem with moves in the wider market this month. Fears of a recession, inflation and surging rates continue to be priced in.

This weakness is certainly a factor in relation to the Evolution Mining share price as well.

The losses come despite reports of potential tailwinds to precious metals from stagflation. Data shows gold is a good diversifier and performs well in these times.

If that’s the case, it could bode in well for the Evolution share price.

In the last 12 months, Evolution has slipped more than 27% into the red, after sliding 16% this year to date.

The post Why is the Evolution share price tumbling 10% so far this week? appeared first on The Motley Fool Australia.

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More reading

• Stagflation and gold: Could it be an ideal match for ASX 200 gold miners?
• 5 things to watch on the ASX 200 on Thursday
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• The Evolution share price hit a 52-week low this month. Here’s why
• 5 things to watch on the ASX 200 on Tuesday

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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