ASX 200 down 0.3%: BHP & Rio Tinto rise, big four banks drop, Zip sinks

BHP Group Ltd (ASX:BHP) and Zip Co Ltd (ASX:Z1P) shares are on the move on the ASX 200 on the Tuesday…

At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is giving back some of Monday's strong gains. At the time of writing, the benchmark index is down 0.3% to 6,665.2 points.

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

Worried young male investor watches financial charts on computer screen

Image source: Getty Images

Bank shares act as a drag.

After helping to drive the ASX 200 index higher on Monday, the big four banks are helping drag it lower on Tuesday. At lunch, all four banks are in the red and weighing heavily on the performance of the benchmark index. The worst performer in the group has been the National Australia Bank Ltd (ASX: NAB) share price. Its shares are down 1.3% at the time of writing.

Gold miners charge higher.

One area of the market that is performing particularly well today is the gold sector. Thanks to a rise of almost 3% in the spot gold price, investors have been bidding the gold miners higher. This has led to the likes of Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) pushing higher and driving the S&P/ASX All Ordinaries Gold index up 3% at lunch.

Mining giants rise.

BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares are defying the market weakness and are storming higher today. Investors have been buying their shares after the iron ore price climbed higher. According to Metal Bulletin, seaborne prices rose due to solid demand in steel markets and positive sentiment after the New Year holiday. The price of 62% fines iron ore lifted 3% to US$165.29 per tonne.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday has been Ramelius Resources Limited (ASX: RMS) share price with a 7% gain. This follows the release of a strong second quarter update. The worst performer on the index has been the Zip Co Ltd (ASX: Z1P) share price with a 4% decline. This is despite there being no news out of the buy now pay later provider. Though, it is worth noting that short interest is rising strongly.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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