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The Sayona Mining Ltd (ASX: SYA) The stock price is moving into early trading Wednesday with no news.
At the time of writing, shares of the lithium-focused metals explorer are trading hands down 5.63% to 33.5 cents apiece.
What’s going on with the Sayona Mining stock price?
Although there was nothing price-sensitive in the Sayona camp this morning, a broad sell-off in US stocks overnight following stronger-than-expected inflation data continued until at the Australian session.
A pulse in risk sentiment is being felt across the ASX sectors today after the readings, which saw core CPI above forecasts, but headline inflation falling within the expected range.
With hot inflation still a priority, the CPI print implies that we expect further interest rate hikes as central banks seek to tackle the inflation problem.
The result saw the collective U.S. market‘s biggest one-day drop since June 2020 – a move seen amid the coronavirus pandemic.
“The Fed increased [rates] by 3 percentage points in the past 6 months… We have yet to feel the full impact of all these increases,” Paul Nolte of Kingsview Asset Management said in a note to clients.
“But we will,” he added. “We are on the threshold of a recession”.
The downside was already realized from the opening bell on Wednesday here on the ASX, with stocks like Sayona Mining hitting early on.
Trading volume in Sayona has already exceeded 31% of the 4-week average of 80.66 million shares, and the price action is bearish for the action in early trading this morning.
Checking a heat map of Australian benchmarks, there is an abundance of red, suggesting that today is going to be a tough day for Australian markets.
Sayona Mining’s stock price is up 158% year-to-date.