At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on track to record another strong gain. The benchmark index is currently up 1.3% to 7,266.5 points.
Here’s what is happening on the ASX 200 today:
US Fed rate increase well-received by investors
The ASX 200 index is charging higher today after investors responded positively to the US Federal Reserve increasing interest rates for the first time in more than three years. The central bank has made a 0.25% rate increase in an effort to address rising inflation without stunting economic growth. Rather than panicking about rates rising, investors appear to be interpreting the hike as a sign that the central bank has confidence in the US economy.
Tech shares rally
One of the best performing areas of the market today has been the tech sector. This follows a strong night of trade for the tech-focused Nasdaq index, which rose 3.8%. Among the best performers in the sector have been payments giant Block Inc CDI (ASX: SQ2) and location technology company Life360 Inc (ASX: 360). They have helped drive the S&P ASX All Technology index up a sizeable 3.8%, matching the Nasdaq’s gains.
Ampol acquisition plans given a boost
The Ampol Ltd (ASX: ALD) share price is rising today after its proposed acquisition of Z Energy Ltd (ASX: ZEL) was given a boost. According to the release, the New Zealand Commerce Commission has provided clearance for the acquisition on the proviso that Ampol fully divests its Gull business in New Zealand within nine months of completing the transaction.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Thursday has been the Zip Co Ltd (ASX: Z1P) share price with a 12% gain following the tech rally. Going the other way, the worst performer has been the Graincorp Ltd (ASX: GNC) share price with a 4.5% decline. This is despite there being no news out of the grain exporter.
The post ASX 200 (ASX:XJO) midday update: Block and Zip shoot higher, Ampol’s acquisition boost appeared first on The Motley Fool Australia.
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More reading
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- ASX 200 shares open with a bang following US interest rate rise
- The Woolworths (ASX:WOW) share price has only added $4 in 8 years. Have the dividends been worth it?
- 5 things to watch on the ASX 200 on Thursday
Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc., Life360, Inc., and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. 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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