Australia's share market made a gain on Tuesday but ended lower for the month of February.
Retail sales rose more than expected in January.
Here's how the trading day unfolded.
Disclaimer: this blog is not intended as investment advice.
Key events
Live updates
Market snapshot at 4:25pm AEDT
By Stephanie Chalmers
- All Ordinaries: +0.5% to 7,458 points
- ASX 200: +0.5% to 7,258 points
- Australian dollar: -0.2% to 67.23 US cents
- Dow Jones: +0.2% to 32,889 points
- S&P 500: +0.3% to 3,982 points
- Nasdaq: +0.6% to 11,466 points
- FTSE: +0.7% to 7,935 points
- EuroStoxx 600: +1% to 462 points
- Brent crude: +0.2% to $US82.59/barrel
- Spot gold: -0.2% to $US1,813/ounce
- Iron ore: -3.1% to $US122.15/tonne
ASX closes higher but loses ground in February
By Stephanie Chalmers
That's a wrap for local trade this Tuesday… and the All Ordinaries and ASX 200 have both managed to finish with around half a per cent higher for the session.
It's the final day of the month, and the ASX 200 has lost 2.9 per cent in February. But it's still 3.1 per cent higher for the year to date.
Here's how the sectors fared this session:
As for individual stocks, miners continued to dominate the top performers while Harvey Norman remained the weakest, but managed to close off its lows:
The Australian dollar has lost some ground, down 0.2 per cent to 67.2 US cents.
That's all from me today — David Chau will be with you bright and early tomorrow!
Industry response to super changes
By Stephanie Chalmers
The Financial Services Council has responded to the federal government's announcement that it will reduce tax breaks on super balance's over $3 million.
The FSC said it provides some certainty to Australians but that important details still need to be resolved.
"The Government has set an important precedent by taking their superannuation taxation changes to the next election," FSC chief executive Blake Briggs said.
“The FSC urges the Government to commit to using the revenue raised from the $3 million cap to improve equity in the superannuation system, particularly paying superannuation contributions on the Government paid parental leave scheme."
Issues the FSC raised include the long-term impact if the $3 million threshold is not indexed.
Speaking on the announced changes, Treasurer Jim Chalmers said the government was trying to end the "super wars".
New migrants to boost food spending but household budgets squeezed
By Stephanie Chalmers
Taking a look at some of the commentary around the January retail sales figures released by the ABS.
Retail turnover rose 1.9 per cent in January, after falling 4 per cent in December — but over the past few months, is little changed.
Here's what some made of it:
"Looking through this seasonality, it is evident that spending growth has eased… We have recently reported that net overseas arrivals are returning at a record pace. A larger population will continue to support higher food consumption going forward. Overseas migrants may also be more likely to eat out and undertake tourist activities before they settle into their working routine. However, other components of retail spending such as household goods and clothing & footwear are likely to continue to slow as rising cost-of-living pressures and higher interest rates squeeze household budgets." Pat Bustamante, St George
"The heightened month-to-month volatility in retail sales makes it hard to get a clear read of momentum in consumer spending currently. Tomorrow's national accounts print for Q4 will give us a more reliable read. Nonetheless, it’s clear that high inflation and rising interest rates are weighing on consumer spending." Sean Langcake, BIS Oxford Economics
"Our ANZ-observed spending data show spending momentum has slowed in February, following a strong January. More households are switching consumption from retail towards discretionary services, like travel, which are not counted in retail sales. More broadly, we continue to expect consumption growth to slow in 2023, as rate rises and cost-of-living pressures eat into household budgets." Madeline Dunk & Adelaide Timbrell, ANZ
Biggest movers on ASX 200
By Stephanie Chalmers
Here's an update on the top and bottom stocks on the ASX 200, with about an hour and a half left of the session:
Harvey Norman continues to lead the laggards.
Earlier in the session, the stock was down as much as 11.8 per cent and posting its biggest fall since February 2020, according to Reuters.
Super changes not until after next election
By Stephanie Chalmers
The change to tax breaks for superannuation balances above $3 million, affecting just 0.5 per cent of people, won't apply until the 2025-26 financial year.
And when's the next federal election due to be held? By mid-2025.
Superannuation tax breaks reduced for accounts over $3m
By Stephanie Chalmers
After flagging changes to the superannuation system, Treasurer Jim Chalmers has revealed what he's described as a modest change — reducing the tax concessions available on super balances over $3 million.
In announcing the change, that level is described as "balances that are beyond what is necessary to fund a comfortable retirement".
From 2025-26, the concessional tax rate applied to future earnings for super balances above $3 million will be 30 per cent — up from 15 per cent.
"The modest adjustment we announce today means 99.5 per cent of Australians with superannuation accounts will continue to receive the same generous tax breaks, and the 0.5 per cent of people with balances above $3 million will receive less generous tax breaks," Mr Chalmers said.
"This is expected to apply to around 80,000 people, and they will continue to benefit from more generous tax breaks on earnings from the $3 million below the threshold."
Read more from ABC political correspondent Brett Worthington:
Market snapshot at 12:30pm AEDT
By Stephanie Chalmers
- All Ordinaries: +0.5% to 7,455 points
- ASX 200: +0.5% to 7,260 points
- Australian dollar: +0.2% to 67.46 US cents
- Dow Jones: +0.2% to 32,889 points
- S&P 500: +0.3% to 3,982 points
- Nasdaq: +0.6% to 11,466 points
- FTSE: +0.7% to 7,935 points
- EuroStoxx 600: +1% to 462 points
- Brent crude: -0.2% to $US82.32/barrel
- Spot gold: flat $US1,817/ounce
- Iron ore: -3.1% to $US122.15/tonne
Gains retained at lunchtime, Aussie dollar up
By Stephanie Chalmers
After the first two hours of trade, the local share market is holding up pretty well.
The ASX 200 is half a per cent higher, led by the materials, energy and real estate sectors.
The Australian dollar is up by around 0.2 per cent, after rising modestly on some data released by the ABS.
Australia's current account surplus widened by more than expected in the final quarter of 2022, to $14.1 billion, thanks to booming resources exports.
And retail sales increased in January, recouping some of December's fall to be largely flat over the past few months.
Retail sales on the rebound in January
By Stephanie Chalmers
So while November stole the thunder from December when it came to Christmas shopping, it looks like we were lured again by the January sales.
Retail turnover rose 1.9 per cent in the first month of the year, according to the ABS.
That follows a 4 per cent fall in December, after November's 1.7 per cent rise.
“Looking through this volatility shows that turnover is at a similar level to September 2022, and on average, growth has been flat over the past few months," ABS head of retail statistics Ben Dorber said.
“November, December and January are the most seasonal months of the year, with retail activity heavily affected by the Christmas period and January holidays.
"This has been heightened by an increase in the popularity of Black Friday sales and growing cost of living pressures combining to drive a change in usual consumer spending patterns.”
It looks like discretionary retail was driving the rebound, with department stores, clothing and footwear, other retailing and household goods posting the strongest pick ups.
Cafe, restaurant and takeaway food spending rose to a record high after slowing in recent months, and the ABS thinks some of that is down to catering at big sporting and cultural events.
ASIC launches first 'greenwashing' court proceedings
By Stephanie Chalmers
The corporate regulator has launched its first court action for alleged greenwashing conduct, against Mercer Superannuation.
ASIC is alleging Mercer made misleading statements about "about the sustainable nature and characteristics of some of its superannuation investment options".
The case is focused on seven ‘Sustainable Plus’ investment options offered by the Mercer Super Trust.
ASIC says these investment options were marketed as excluding companies involved in "carbon intensive fossil fuels like thermal coal", as well as alcohol production and gambling.
However, ASIC alleges that wasn't really the case:
ASIC alleges members who took up the Sustainable Plus options had investments in companies involved in industries the website statements said were excluded. For example:
15 companies involved in the extraction or sale of carbon intensive fossil fuels (including AGL Energy Ltd, BHP Group Ltd, Glencore PLC and Whitehaven Coal Ltd);
15 companies involved in the production of alcohol (including Budweiser Brewing Company APAC Ltd, Carlsberg AS, Heineken Holding NV and Treasury Wine Estates Ltd); and
19 companies involved in gambling (including Aristocrat Leisure Limited, Caesar’s Entertainment Inc, Crown Resorts Limited and Tabcorp Holdings Limited).
In doing so, ASIC alleges Mercer made false and misleading statements and engaged in conduct that could mislead the public.
Mercer issued a brief response:
Mercer has co-operated with ASIC throughout its investigation, and will continue to carefully consider ASIC’s concerns with respect to this matter.
It would be inappropriate to comment further as the matter is now before the courts.
The date for the first court hearing is yet to be scheduled.
Harvey Norman sales down in January
By Stephanie Chalmers
Shares in Harvey Norman have slumped this morning, after its profit result disappointed the market.
The retailer's half year net profit fell by 15%.
In an update on its January performance, Harvey Norman said sales across its Australian franchisees were down more than 10 per cent compared to January 2022.
E&P Financial retail analyst Phillip Kimber described the January sales result as "weak" and below his forecasts.
"Despite the macroeconomic headwinds and cost of living pressures affecting discretionary retail, our strong balance sheet and our substantial growth in net assets throughout the pandemic has left us in a solid position to withstand these challenging circumstances," the company said.
Best & worst performers so far
By Stephanie Chalmers
Gains for the big mining and energy stocks are helping lift the market, including Rio Tinto (+2.1%), Fortescue (+3.7%), Santos (+1.9%).
And here are the best-performing stocks on the ASX 200 so far, by percentage change:
- Capricorn Metals (+5%)
- De Grey Mining (+4.3%)
- Nickel Industries (+4.2%)
- West African Resources (+4%)
- Waypoint REIT (+4%)
On the flipside, the worst falls have been for:
- Harvey Norman (-9.4%)
- Adbri (-8.7%)
- NEXTDC (-5.4%)
- Telix Pharma (-5.3%)
- InvoCare (-3.8%)
Market snapshot at 10:20am AEDT
By Stephanie Chalmers
- All Ordinaries: +0.6% to 7,461 points
- ASX 200: +0.6% to 7,267 points
- Australian dollar: +0.1% to 67.39 US cents
- Dow Jones: +0.2% to 32,889 points
- S&P 500: +0.3% to 3,982 points
- Nasdaq: +0.6% to 11,466 points
- FTSE: +0.7% to 7,935 points
- EuroStoxx 600: +1% to 462 points
- Brent crude: -0.9% to $US82.44/barrel
- Spot gold: flat $US1,817/ounce
- Iron ore: -3.1% to $US122.15/tonne
ASX on the up in early trade
By Stephanie Chalmers
After the first few minutes of trade, it's mostly one-way traffic on the Australian share market, with 136 of the top 200 stocks on the rise.
The ASX 200 and the All Ordinaries are up by around 0.4 per cent so far.
However, there are some notable early falls — shares in Harvey Norman are down 9.1 per cent after its profit result.
Mining and materials stocks are dominating the best performers list.
Here's how the sectors are faring:
Uncertain future for major logistics group employing 1,500 people
By Stephanie Chalmers
Receivers of Scott's Refrigerated Logistics say the jobs of 1,500 employees are secure for now, while it runs a sales process for the business.
The transport operator, which moves goods for major supermarkets including Coles, Woolworths and Aldi, entered voluntary administration on Monday.
KordaMentha has been appointed as receiver by secured creditors.
KordaMentha's Scott Langdon told ABC News Breakfast suppliers have been paid yesterday, workers will be paid today and supply of goods will continue.
He said he expects a high level of interest in the business, given its importance to Australia's cold chain supply system.
The Transport Worker's Union says it's working with KordaMentha to secure that hundreds of transport workers are prioritised in the sales process.
“This is another tragedy of the untrammelled commercial power at the top of transport supply chains. Retailers are reaping the gains from razor-thin margins while operators and drivers collapse under the strain," TWU National Secretary Michael Kaine said.
Reporting season
By Stephanie Chalmers
There's still a few company profit reports trickling in this morning at the tail end of the reporting season:
- Harvey Norman's half year net profit fell by 15% to $365.9 million.
- Bubs Australia reported a half year loss of $44 million. Infant formula revenue was up but sales were down due to the impact of lockdowns in China
- Buy now, pay later firm Sezzle narrowed its full year net loss to $38.1 million
Apply here! RBA board vacancies advertised
By Stephanie Chalmers
A shakeup on the board of the Reserve Bank is starting to get underway ahead of the review of the central bank, due to be handed to the Treasurer by the end of March.
Jim Chalmers has confirmed that two board members — Wendy Craik and Mark Barnaba — won't be reappointed making way for wider boardroom "renewal" at the RBA later this year.
The positions have been publicly advertised on the Treasury website — applications close on the 8th of March so there's still time to dust off your resume.
If this sounds like you, why not give it a crack:
Candidates for non-executive board member positions should have knowledge and/or experience in economics, labour markets, financial markets, industry or public policy formulation. They should also have strong communication and strategic thinking skills.
Here's more from ABC senior business correspondent Peter Ryan:
Market snapshot at 8:15am AEDT
By Stephanie Chalmers
- ASX SPI 200 Futures: +0.5% at 7,201 points
- Australian dollar: +0.2% to 67.39 US cents
- Dow Jones: +0.2% to 32,889 points
- S&P 500: +0.3% to 3,982 points
- Nasdaq: +0.6% to 11,466 points
- FTSE: +0.7% to 7,935 points
- EuroStoxx 600: +1% to 462 points
- Brent crude: -1% to $US82.33/barrel
- Spot gold: +0.3% to $US1,816/ounce
- Iron ore: -3.1% to $US122.15/tonne
US stocks finish slightly higher
By Stephanie Chalmers
After strong gains early in the session, US stocks lost some steam but still managed to finish with gains.
The Nasdaq was the best performer, rising 0.6 per cent, with the S&P 500 up around 0.3 per cent.
"On the heels of the worst week of the year, first three-week losing streak for the S&P since December, a little green is a welcome change but again the reality is market participants are trying to square the circle with exactly how long the Fed will leave rates high, and is a 50 basis point hike really on the table at the next meeting," Carson Group chief market strategist Ryan Detrick told Reuters.
"It's led to a good deal of uncertainty, and we have seen that when there is uncertainty there can be selling and volatility."
