ASX 200 down 0.4%: Appen downgrades guidance, Fortescue hits a record high

Appen Ltd (ASX:APX) and Fortescue Metals Group Limited (ASX:FMG) shares are making a splash on the ASX 200 on Thursday…
The post ASX 200 down 0.4%: Appen downgrades guidance, Fortescue hits a record high appeared first on The Motley Fool Australia. –

Worried young male investor watches financial charts on computer screen

At lunch the S&P/ASX 200 Index (ASX: XJO) is off its lows but remains on course to end its winning streak. The benchmark index is currently down 0.4% to 6,702.9 points.

Here’s what is happening on the market today:

Appen downgrades guidance.

The Appen Ltd (ASX: APX) share price has been sold off on Thursday after it downgraded its FY 2020 guidance. Due to COVID-19 headwinds, the artificial intelligence services company is now expecting to report full year underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $106 million to $109 million (or $108 million to $111 million when applying the originally assumed exchange rate). This is a reduction from its previous guidance of $125 million to $130 million. Management advised that many of its major customers in California have been hit by lockdowns, which has impacted investment decisions.

Fortescue hits record high.

The Fortescue Metals Group Limited (ASX: FMG) share price continued its ascent and hit a record high of $22.58 this morning. Investors have been buying the iron ore producer’s shares again on Thursday after the price of the steel making ingredient continued to rise. According to CommSec, the spot iron ore price pushed through the US$150 a tonne level overnight.

Gold miners tumble lower.

Australian gold miners have come under pressure today after the spot gold price tumbled lower overnight. The price of the precious metal dropped over 2% after vaccine optimism gave risk sentiment a boost and weighed heavily on safe haven assets. The likes of Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) are trading notably lower and have dragged the S&P/ASX All Ordinaries Gold index down 3.3% at lunch.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the Perpetual Limited (ASX: PPT) share price with a gain of 6%. This morning Credit Suisse upgraded the fund manager to an outperform rating with a $39.00 price target. The worst performer has been the Appen share price by some distance with a 12% decline. This follows its guidance downgrade.

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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 Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 down 0.4%: Appen downgrades guidance, Fortescue hits a record high appeared first on The Motley Fool Australia.

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