ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound

It has been a volatile day for the ASX 200…

At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and dropped into the red. The benchmark index is currently down 0.15% to 7,237.3 points.

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

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A2 Milk share price falls on class action news

The A2 Milk Company Ltd (ASX: A2M) share price is tumbling lower today after being hit with a class action by Slater & Gordon Limited (ASX: SGH). The law firm alleges that a2 Milk Company was or ought to have been aware that its FY 2021 guidance and subsequent representations did not adequately take account of a number of factors which would impact its financial performance. The embattled infant formula company advised that it "will vigorously defend the proceedings."

Tech shares rebound

It has been a much better day for tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) on Wednesday. They are rebounding from yesterday's selloff thanks to a strong night of trade on the Nasdaq index. The tech-focused index climbed 1.25% during overnight trade.

ASX 200 energy shares rise on oil price surge

One area of the market that is performing particularly positively today is the energy sector. A number of energy shares, such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL), are rising and doing their best to support the ASX 200. This follows another positive night for oil prices. According to CNBC, on Tuesday night the Brent crude oil price settled 1.6% higher at US$82.56 per barrel and the WTI oil price settled 1.7% higher at US$78.93 per barrel. The latter was its highest level since 2014.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Eagers Automotive Ltd (ASX: APE) share price with a 5% gain. This follows its appearance at the Morgans conference. The worst performer has been the Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price with a 5% decline on no news.

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 and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has recommended A2 Milk. 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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