At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is off its intraday low but still trading lower for the day. The benchmark index is currently down 0.3% to 6,726.1 points.
Here's what is happening on the market today:
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Tech shares act as a drag
Australian tech shares including Afterpay Ltd (ASX: APT) and Zip Co Limited (ASX: Z1P) are acting as a drag on the ASX 200 on Friday. This follows a selloff of US tech stocks overnight after bond yields surged to new 14-month highs. Positively, though, with US futures pointing higher, many tech shares are now recovering from their lows for the day.
Fortescue raises US$1.5 billion
The Fortescue Metals Group Limited (ASX: FMG) share price is edging lower today after revealing the successful completion of a US$1.5 billion bond offering. This was more than double what the company was seeking to raise. It upsized the offering due to strong demand. The proceeds will be applied to the repayment of its US$750 million 2022 Senior Unsecured Notes and general corporate purposes. The latter could include the repayment of debt.
AGL Portland Smelter update
The AGL Energy Limited (ASX: AGL) share price is pushing higher today after announcing that it has finalised a new agreement to supply a proportion of the electricity requirement of the Portland Smelter aluminium smelter. The agreement will take effect from 1 August 2021 when the existing supply contract ends and then run until July 2026. The energy company revealed that the new contract is for a volume of 275 MW and represents a mutually beneficial outcome in respect to commercial terms.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Friday has been the News Corporation (ASX: NWS) share price with a 3% gain on no news. The worst performer has been the Service Stream Limited (ASX: SSM) share price with a 4% decline. Today is the final day that the essential network services company's shares will be included in the ASX 200. They will be dumped out of the index at Monday's rebalance.
