At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is on course to start the week with a decline. The benchmark index is currently down 0.6% to 6,563.8 points.
Here's what has been happening on the market today:
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Treasury Wine share price sinks lower.
The Treasury Wine Estates Ltd (ASX: TWE) share price crashed as much as 12% lower this morning before staging a partial recovery. The wine company revealed that the Chinese tariffs on its wine exports are expected to hit its sales in the country hard. Given that China contributed 30% of its earnings in FY 2020, management is acting fast to limit the damage. Its plan includes the reallocation of Penfolds Bin and Icon range from China to other key luxury growth market. Though, management has warned it could take three years for this plan to reach its full potential.
Zip Co AGM update.
The Zip Co Ltd (ASX: Z1P) share price has given back its morning gains and is trading flat at lunch. This morning the buy now pay later provider released its annual general meeting presentation. That update revealed that it is now launching in the $600 billion UK market after COVID-19 pushed back its original launch plans. Management revealed that it has 150 merchants live on its platform and will be bringing on global fashion and apparel brands, JD Sports, Boohoo, Fanatics and Fashionova.
Tech shares push higher.
The ASX 200 may be dropping lower, but that hasn't stopped Afterpay Ltd (ASX: APT), WiseTech Global Ltd (ASX: WTC), and other tech shares from charging higher. This appears to have been driven by a strong night of trade on the technology focused Nasdaq index on Friday. The S&P/ASX All Technology Index (ASX: XTX) is up 0.8% at the time of writing.
Best and worst ASX 200 performers.
The Bega Cheese Ltd (ASX: BGA) share price has been the best performer on the ASX 200 on Monday with a 5% gain. Investors have continued to buy its shares following the announcement of the Lion Dairy & Drinks acquisition for $534 million. The worst performer on the ASX 200 has been the Treasury Wine share price with a 7% decline. This comes after the wine company revealed the extent of the damage that China's tariffs will have on its business.
