ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump

The ASX 200 is having a difficult day due to weakness in the mining sector…

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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has been fighting hard to stay in positive territory but is falling short. The benchmark index is currently down 0.25% to 6,612.4 points.

Here’s what is happening on the ASX 200 index on Wednesday:

Miners weigh on the ASX 200

Concerns that there could be a global recession put pressure on commodity prices overnight. This has led to mining giants such as BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and South32 Ltd (ASX: S32) tumbling notably lower today. So much so, the S&P/ASX 200 Resources index is down 4.4% at the time of writing.

EML Payments jumps

The EML Payments Ltd (ASX: EML) share price is racing higher today. This follows news that the payments company has signed an agreement with the Spain’s national post office network, Correos. EML will support the issuing of a government contract known as the Bono Cultural Joven 2022 (Youth Cultural Bonus) tender. This is supporting the cultural sector which was adversely impacted during the pandemic.

Energy shares tumble

Energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) have sunk deep into the red today. This follows a sharp pullback in oil prices amid concerns that a recession could lessen demand for energy products. According to Bloomberg, the WTI crude oil price fell more than 10% before eventually closing the session 8.2% lower at US$99.50 per barrel. Brent crude oil ended the session 9.45% lower at US$102.77 a barrel.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has inexplicably been the Zip Co Ltd (ASX: ZIP) share price with a 17% gain on no news. However, it is worth noting that the tech sector is performing very positively today. The worst performer has been the Regis Resources Limited (ASX: RRL) share price with a 7% decline. This follows broad weakness in the gold sector and the release of a bearish broker note out of Citi.

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 EML Payments and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended EML Payments. 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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