South32 chief executive Graham Kerr is not expecting a global recession but says the economic outlook has cooled on war in Europe, coronavirus outbreaks in China and inflationary pressures that may worsen in the months ahead.

Mining and energy stocks were sold down heavily on Tuesday on fears that Chinese demand for commodities would be curtailed by lockdowns to prevent the spread of the virus at a time when Russia’s war in Ukraine had already stoked inflationary pressures across the industry.