The BHP Group Ltd (ASX: BHP) share price is on course for a four-day losing streak on Friday.
As we barrel towards midday, shares in the mining giant are getting the cold shoulder from investors. The company's share price is down a frosty 2.1% to $45.62 apiece amid a lacklustre performance from mining shares broadly. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is similarly wincing in pain with its own 1.54% fall.
The only companies within the ASX materials sector dodging the red today are gold miners such as Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN).
This begs the question: why is the BHP share price under pressure today?
Where is the worry coming from?
As usual, the first place to look is at the company's own announcements. Today, BHP has announced the resignation of John-Paul Santamaria as a company secretary.
The resignation is effective immediately with two other company secretaries remaining — Stefanie Wilkinson and Prakash Kakkad. No additional information about the resignation was provided within the release.
While such resignations can impact the share price, it is likely that economic news is putting pressure on the BHP share price. Namely the release of inflation figures from China overnight which painted a softer-than-expected economic environment.
Hopes had been high for a powerful rebound in activity in China following the lifting of its zero-COVID policy. This was the case in January, as its consumer price index (CPI) lifted 2.1% year-on-year. However, the data for February was a much weaker 1% increase compared to a year ago.
The data could be casting doubt over the return of strong demand for base metals such as copper, nickel, and iron. This information douses fuel on the fire of concern following remarks shared by United States Federal Reserve chair Jerome Powell a couple of days ago.
The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.
More monetary tightening than previously expected would intentionally constrict economic growth — a headwind for commodities. Keep in mind, iron ore and copper prices are still off by 18% and 14% respectively from a year ago.
Is the BHP share price lagging behind the index this year?
From an outperformer to an underperformer. It hasn't been the best start to the year for BHP shares.
Initially, the BHP share price was on fire — soaring more than 10% higher throughout January. However, the momentum reversed during February as commodity prices steadied.
Shares in the company are now only 0.8% above where they finished 2022, while the benchmark is still holding onto a 3.4% rise.
