ASX 200 down 0.9%: Big four banks drop, Metcash charges higher

The ASX 200 is under pressure on Tuesday…

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shocked and stressed man looking at his laptop and trying to absorb bad news about the share price falling

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. The benchmark index is currently down 0.9% to 7,241.8 points.

Here’s what is happening on the market today:

Big four banks drop

The big four banks are under pressure and acting as a drag on the market today. All four banks are in the red at lunch, with the National Australia Bank Ltd (ASX: NAB) share price the worst performer in the group. Its shares are down 1.1% at the time of writing. Investors appear to have been spooked by lockdowns and border closures following the spread of COVID-19 into several states.

Brokers respond positive to Metcash result

The Metcash Limited (ASX: MTS) share price is charging higher on Tuesday after brokers responded positively to its full year results release. Credit Suisse has retained its outperform rating and lifted its price target to $4.16. Whereas Morgan Stanley retained its overweight rating and increased its price target to $4.15. The compares to the current Metcash share price of $3.86.

ResMed downgraded

The ResMed Inc. (ASX: RMD) share price is trading lower today. This appears to have been driven by a broker note out of Citi this morning. According to the note, the broker has downgraded the medical device company’s shares to a neutral rating with an improved price target of $32.50. Citi made the move on valuation grounds after a strong gain this month. The ResMed share price is up 17% since this time last month thanks to a major product recall from a leading competitor.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Metcash share price with a 4% gain. This follows the aforementioned positive response to its full year results. The worst performer with a 4.5% decline has been the Vicinity Centres (ASX: VCX) share price. This morning the property company’s shares traded ex-dividend.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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