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.
Image source: Getty Images
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.
