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Highlights
- Fortescue shares plunged as a result of the rising volatility due to rising inflation in the US.
- The US inflation is likely to stay longer than expected.
- Fortescue shares were also affected by the sectoral performance today.
The shares of Fortescue Metals Group Ltd (ASX:FMG) were spotted trading 4.890% lower at AU$18.67 per share at 10:42 AM AEST on the ASX today (17 June).
The share price of Fortescue has fallen over 17% on the ASX over the past 12 months. On the other hand, Fortescue’s year-to-date share price also fell over 5% (as of 10:42 AM AEST on 17 June).
Why did Fortescue Metals shares open in red on ASX today?
Fortescue did not come up with any new update on the ASX today which could justify its downward and it seems that the downward share price march of the iron ore mining company is driven by the sectoral influence on ASX today.
he S&P/ASX 200 Materials sector (ASX:XMJ) was spotted trading 2.815% lower at 16437.5 at 11:13 AM AEST on the ASX today (17 June).
The shares of the ASX 200 Materials sector has gained over 3% on the ASX over the past 12 months. On the other hand, the share price of the ASX 200 Materials sector fell over 4% on year-to-date (YTD) basis today.
Also read: How is Fortescue (ASX:FMG) share price moving today?
Another factor that has probably affected the share price of Fortescue could be the impact of the US inflation.
Volatility in every sector has increased as the experts believe that inflation in the US could last longer than expected.
Some other leading ASX-listed material stocks, such as BHP Group and Rio Tinto, were both trading in red on Friday morning.
The shares of BHP Group Limited (ASX:BHP) were spotted trading 3.203% lower at AU$42.6 per share at 11:12 AM AEST on the ASX today (17 June).
Meanwhile, the shares of Rio Tinto Limited (ASX:RIO) were spotted trading 3.442% lower at AU$107.855 per share at 11:15 AM AEST on the ASX today (17 June).
Things to know about Fortescue
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Established in the year 2003, Fortescue Metals Group Limited is an ASX-listed iron ore miner with a market capitalisation of AU$60.44 billion. The company is primarily involved in the exploration, development, production, processing and selling of iron ore across the globe.
Fortescue currently owns four mine sites in the Pilbara region and operates designed rail and port facilities for supply to Port Hedland.
