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ASX 200 down 0.2%: Afterpay rockets on Westpac deal, Zip climbs, BHP’s Q1 update

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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. The benchmark index is currently down 0.2% to 6,216.9 points.

Here’s what has been happening on the market today:

Afterpay share price breaks $100 level on Westpac deal.

The Afterpay Ltd (ASX: APT) share price has surpassed the $100 market for the first time after announcing a partnership with banking giant Westpac Banking Corp (ASX: WBC). According to the release, Afterpay will provide Westpac transaction and savings accounts and other cashflow management tools to its 3.3 million customers in Australia from the second quarter of 2021. Management believes this has the potential to facilitate new revenue streams over time, without needing to develop traditional banking or credit products. The new money management services will be provided by Westpac’s new digital bank-as-a-service platform.

Zip share price higher on Tap & Zip news.

Afterpay isn’t the only buy now pay later provider making the headlines on Tuesday. The Zip Co Ltd (ASX: Z1P) share price is pushing higher today following the announcement of its Tap & Zip product this morning. Zip’s new product allows its customers to make purchases in store anywhere that accepts contactless Visa payments. With just 13% of stores in Australia accepting buy now pay later options, management feels this gives it access to a large untapped market.

BHP quarterly update.

The BHP Group Ltd (ASX: BHP) share price is trading lower following the release of its first quarter update. For the three months ended 30 September, the mining giant recorded iron ore production of 66.04 Mt. This was a 1% quarter on quarter decline, but up 7% on the prior corresponding period. Looking ahead, all production and unit cost guidance remains unchanged for the 2021 financial year. This excludes guidance for Cerrejón production, which is under review due to an ongoing strike.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday is the Afterpay share price with a gain of 7.5%. Investors have responded very positively to its partnership with Westpac. The worst performer has been the IDP Education Ltd (ASX: IEL) share price with a 5% decline. This follows the release of its annual general meeting update today.

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Returns as of 6th October 2020

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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