ASX 200 (ASX:XJO) midday update: Afterpay & Zip sink, energy shares rise

It has been a red day for the ASX 200…

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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 1% to 7,208.2 points.

Here’s what is happening on the ASX 200 today:

Tech shares weigh on ASX 200

One area of the market weighing heavily on the ASX 200 today has been the tech sector. At the time of writing, the shares of Afterpay Ltd (ASX: APT) and the Zip Co Ltd (ASX: Z1P) are both down approximately 5%. This has led to the S&P/ASX All Technology Index dropping 3.1% at the time of writing. Investors have been selling tech shares after a disappointing night of trade on the tech-focused Nasdaq index.

Energy shares rise

It has been a good day for Australian energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO). They are pushing higher today and helping to offset some of the ASX 200’s declines. Investors have been buying energy shares after oil prices rose in response to news that OPEC is planning to stick to gradual supply increases. According to Bloomberg, the WTI crude oil price and the Brent crude oil price both rose over 2% overnight.

Xero given buy rating

The Xero Limited (ASX: XRO) share price may be dropping along with the tech sector today but one leading broker believes it will rebound strongly. This morning the team at Goldman Sachs reiterated their buy rating and $165.00 price target on the cloud accounting platform provider’s shares. The broker notes that updates provided by rival Intuit at its investor day are supportive of its positive view on Xero.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Silver Lake Resources Limited (ASX: SLR) share price with a gain of 5%. This follows a rise in the gold price overnight and increased demand for safe haven assets. The worst performer has been the IDP Education Ltd (ASX: IEL) share price with a 6% decline following weakness in the tech sector.

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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. owns shares of and has recommended AFTERPAY T FPO, Idp Education Pty Ltd, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Xero. 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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