The BHP Group Ltd (ASX: BHP) share price has come under significant pressure on Tuesday.
In morning trade, the mining giant's shares are down over 6% to $43.16.
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Why is the BHP share price sinking?
Investors have been selling down the BHP share price following a horror start to the week for the local share market. In early trade, the benchmark ASX 200 index was down over 5% amid broad market weakness.
The catalyst for this has been a selloff on Wall Street on Friday and Monday, which saw BHP's NYSE listed shares lose almost 7% of their value over the two trading session.
This has been driven by higher than expected US inflation data, which has sparked fears that the US Federal Reserve will be forced to increase interest rates at a quicker than anticipated rate to tame inflation. If this is the case, there's a real possibility of it causing a recession in the United States.
Combined with similar central bank action across the globe, there are concerns that the global economy could also fall into a recession. This could impact demand for commodities, which led to a range of base metals taking a tumble overnight and has not helped the BHP share price today.
