ASX 200 (ASX:XJO) midday update: Rio Tinto cuts guidance, Treasury Wine disappoints

The ASX 200 is having a decent day…

| More on:
Man looks shocked as he works on laptop on top a skyscraper with stockmarket figures in graphic behind him.

Image source: Getty Images

At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is following the lead of US markets and pushing higher. The benchmark index is currently up 0.3% to 7,334.6 points.

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

Rio Tinto quarterly update

The Rio Tinto Limited (ASX: RIO) share price is lower following the release of its third-quarter update. The update reveals that the ASX 200 mining giant had a mixed quarter. As a result, RIO management has downgraded the company’s iron ore shipments and copper production guidance. In respect to the former, Pilbara iron ore shipments are now expected to be in the range of 320Mt to 325Mt. This compares to its previous guidance of 325Mt to 340Mt.

Treasury Wine update

The Treasury Wine Estates Ltd (ASX: TWE) share price is tumbling lower following the release of a first-quarter trading update at its annual general meeting. The update reveals that Treasury Wine’s performance during the quarter was softer than expected. Management commented: “As we exit the first quarter of fiscal 22, the recovery of key luxury channels impacted by the pandemic are slightly behind the expectations we had at the beginning of the year.”

IAG taken to court by ASIC

Also heading lower today is the Insurance Australia Group Ltd (ASX: IAG) share price. This follows news that ASIC has launched civil proceedings against the ASX 200 insurance giant in the Federal Court. The corporate watchdog alleges that Insurance Australia misled customers by applying discounts while simultaneously upping premiums. It alleges that NRMA customers missed out on more than $60 million worth of discounts.

Best and worst ASX 200 performers

The best performer on the ASX 200 today is the ARB Corporation Limited (ASX: ARB) share price, up 6%. This morning Citi upgraded the auto parts company to a buy rating with a $55.45 price target. This is in response to its AGM update. The worst performer on the ASX 200 is the Pendal Group Ltd (ASX: PDL) share price with a 10% decline following its funds under management update.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited and Treasury Wine Estates Limited. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News