Why are ASX hydrogen shares tumbling today?

Are international markets weighing on ASX hydrogen companies today?

Wednesday is proving to be tough for ASX hydrogen shares.

At the time of writing, the share prices of ASX hydrogen companies, Hazer Group Ltd (ASX: HZR), Pure Hydrogen Corporation Ltd (ASX: PH2), and Province Resources Ltd (ASX: PRL) are down 3.36%, 3.03%, and 3.12% respectively.

For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.36%, while the All Ordinaries Index (ASX: XAO) is sporting a 0.44% slump.

Additionally, the S&P/ASX 200 Materials Index (ASX: XMJ) is see-sawing on Wednesday. Currently, it is 0.54% higher.

Let's take a look at what could be weighing on ASX hydrogen shares today.

A woman standing on a path flanked by big green trees is surrounded by colourful balloons tumbling from the sky.

Image source: Getty Images

Have US markets caused ASX hydrogen shares suffering?

It's a tough day for hydrogen-focused ASX shares, which are potentially being driven downwards by the poor performance of some of their international peers.

As my Foolish US colleague reported yesterday, the growth positions of many hydrogen companies might be weakening their performance.

Of course, hydrogen as an energy source is relatively new. That means many hydrogen companies are in their infancy.

In fact, Hazer, Pure Hydrogen, and Province Resources all sport market capitalisations of between $167 million and $215 million.

Growth stocks are generally at the mercy of markets. Unfortunately, those markets – particularly that of the United States – could look a little rocky at the moment.

Yesterday, United States Federal Reserve chair Jerome Powell said the Omicron COVID-19 variant is a risk to the nation's employment and economic activity.

It is, therefore, a potential harbinger of inflation.

Finally, ASX shares tend to move in trend with their United States-listed counterparts.

Thus, ASX hydrogen shares might be reacting to some NASDAQ-listed hydrogen stocks movement overnight.

While most of Australia slept last night, the FuelCell Energy Inc (NASDAQ: FCEL) share price slipped 2.6%. Meanwhile, that of Plug Power Inc (NASDAQ: PLUG) tumbled 4.2%.

Though, plenty of US-listed hydrogen shares did post modest gains in Tuesday's session.

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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