ASX 200 midday update: ResMed’s US$1bn acquisition, tech shares continue to sink

The ASX 200 is having another off day…

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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has recovered from its intraday low but remains in the red. The benchmark index is currently down 0.25% to 6,668.4 points.

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

Rio Tinto shares lift on Gudai-Darri update

After a soft start to the day, the Rio Tinto Limited (ASX: RIO) share price is now pushing higher. This follows news that the mining giant has delivered its first ore from the Gudai-Darri iron ore mine in the Pilbara, Western Australia. The Gudai-Darri iron ore mine will help underpin future production of the company’s flagship Pilbara Blend product.

Tech shares continue to tumble

The tech sector is under pressure again on Wednesday, with the likes of Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) posting disappointing declines. This has led to the S&P ASX All Technology index losing a further 1.7% of its value today. This means the technology index is now down 39% since the start of the year.

ResMed’s US$1bn acquisition

The ResMed Inc (ASX: RMD) share price is trading lower despite the sleep treatment company announcing a major acquisition. ResMed has signed an agreement to acquire Medifox Dan for US$1 billion. It is a German leader in out-of-hospital software solutions for providers in major settings across the care continuum. Management believes the deal will strengthen the company’s position as a global leader in healthcare software solutions.

Best and worst ASX 200 performers

The best performer on the ASX 200 has been the Lynas Rare Earths Ltd (ASX: LYC) share price with a 4.5% gain. This morning Macquarie reiterated its outperform rating and $12.80 price target on this rare earths producer’s shares. This was in response to yesterday’s announcement. Going the other way, the worst performer has been the Novonix Ltd (ASX: NVX) share price with an 8% decline on no news. Its shares are now down 75% in 2022.

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 positions in and has recommended Block, Inc., ResMed Inc., and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended Block, Inc., ResMed Inc., and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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