The Australian share market bounced back on Wednesday after four consecutive days of losses.
See how the trading day unfolded on our markets blog.
Follow the day's financial news and insights from our specialist business reporters. And let us know if there's anything you'd like to know?
Disclaimer: This blog is not intended as investment advice.
Key events
Live updates
Market snapshot
By Rhiana Whitson
This is how things were looking after the close on Wednesday:
- ASX 200: +1.3 per cent to 7,115
- All Ordinaries: +1.3 per cent to 7,293
- Aussie dollar: -0.5pc 66.67 US cents
- On Wall Street: Dow +0.3pc, S&P 500 +0.2pc, Nasdaq +0.1pc
- In Europe: Stoxx 600 -0.4pc, FTSE +0.1pc, DAX -0.4pc
- Spot gold: Flat at $US1,824 an ounce
- Brent crude: +1pc $US88.09 a barrel
- Iron ore: + 0.3pc $US109.86 a tonne. (overnight)
- Bitcoin: +0.2pc to $US16,837
Goodbye from me
By Rhiana Whitson
That's it for me today.
Thanks for reading.
ASX closes higher boosted by miners, energy, utilities
By Rhiana Whitson
Australian shares closed higher, bouncing back from four straight days of losses.
The benchmark ASX 200 closed up 90.80 points or 1.29 per cent to7,115.
The All Ords gained 93.40 points or 1.30 per cent 7,293.
$1.5 billion Swyftx, Superheo merger off
By Rhiana Whitson
The merger of Australian cryptocurrency trading platform Swyftx and online investing platform Superhero worth $1.5 billion has been called off.
The deal was hyped as creating Australia's first app that traded traditional shares and cryptocurrency investments.
Superhero is an online investing platform that allows customers to invest in Australian and US shares, and ETFs.
Crypto exchange Swyftx has 600,000 customers, and earlier this month cut around 40 per cent of its staff in the wake of the US platform FTX's collapse.
The ABC contacted Swyftx and Superhero for comment.
Cryptocurrency is facing regulation in Australia.
This is what Alex Harper, CEO and co-founder of Swyftx, had to say in a statement:
“It is a disappointing outcome but ultimately, we took this decision in the best interests of both Superhero and Swyftx, as well as their customers," Mr Harper said.
“The policy environment has changed significantly since we announced the merger and neither party has been able to realise the vision of the merger in any meaningful way. We currently face a scenario where there might be no realised benefits to customers from the merger until 2024 at the earliest.
“Under these circumstances, we felt it best to focus on our core offering. The decision puts Swyftx in a strong position and frees us up to focus on consolidation and growth opportunities in digital assets.”
Superhero CEO and co-founder John Winters says the decision to demerge is in the best interests of the company and customers:
“The volatility in the market as well as the current regulatory environment has made it increasingly difficult to achieve the initial vision that inspired the merger earlier this year. Superhero will return to being independently owned by myself and my co-founder Wayne Baskin as well as our loyal investors who have supported the growth of Superhero since 2018," Mr Winters said in a statement.
“We thank Alex, Angus and the Swyftx team for their support over the last six months and wish them all the best for the future.”
Gas price falls after federal government cap announced
By Rhiana Whitson
Westpac's Commodities Update for December, which was sent out to media this afternoon, takes a look back at how gas prices fell after the federal government announced price caps.
Senior economist at Westpac Justin Smirk notes:
"Australian gas prices spiked to a record high of $50/gigajoule in July but then eased to around $20/gigajoule through November and into December," according to Mr Skirk's note.
"But it is interesting to note that post the announcement last Friday (9th of December) that the Commonwealth Government was going to introduce a cap of $12/gigajoule the following Monday (12th of December) saw both the AMEO and Wallumbilla gas price fall to $12/gigajoule and continued to fall through December getting down to $10/gigajoule as we went to press."
The legislation to cap gas prices for 12 months passed parliament on December 15.
How curious.
Asian markets recover losses
By Rhiana Whitson
Japan's Nikkei was lifting off the two-month low it hit after the Bank of Japan's surprise decision to loosen its tight leash on government bond yields.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent.
Japan's Nikkei was down 0.2 per cent, paring earlier losses of around 1 per cent.
Investors have been digesting the surprise move from Bank of Japan (BOJ), which widened its trading band for 10-year government bond yields from 25 basis points (bps) either side of zero to 50 bps.
That triggered a leap in the yen, which had spent most of the year sliding because of Japan's low yields, selling in Japan's stock market and a selloff for bonds around the world.
Market snapshot at 3:00pm AEDT
By Rhiana Whitson
- ASX 200: +1.4 per cent to 7,123
- All Ordinaries: +1.4 per cent to 7,301
- Aussie dollar: -0.2 per cent 66.03 US cents
- Spot gold: -0.03 per cent at $US1,824 an ounce
- Brent crude: +0.1 per cent $US80.10 a barrel
- Iron ore: +0.3 per cent $US109.86 a tonne (overnight)
- Bitcoin: -0.3 per cent to $US16,831
Westpac-Melbourne Institute Leading Index falls for the fourth month in a row
By Rhiana Whitson
A key measure of future economic activity slipped again in November, adding weight to forecasts of a rocky 2023.
The Westpac-Melbourne Institute Leading Index forecasts the likely pace of economic activity in the coming three to nine months.
The index fell from –0.84 per cent in October to –0.92 per cent in November.
November is the fourth consecutive month that the growth rate has been negative
Westpac expects growth of only 1 per cent over the year with growth at zero in the second half of 2023.
Westpac Chief Economist Bill Evans explains the reasons behind the trend:
"The accumulated impact of the Reserve Bank’s tightening cycle, which began in May this year and is expected to extend out to May 2023, will be the main source of the economic headwinds although persistent declines in real wages; an ongoing deterioration in the residential housing market; uncertain asset markets; and a difficult year for the global economy will all play their parts," Mr Evans said.
Will 2023 be a good or bad year for the economy?
By Rhiana Whitson
Yes, it's almost time to cheers the new year.
ABC News business reporter Rachel Pupazzoni speaks to four leading economists about inflation, interest rates, house prices, unemployment and other global headwinds.
Check out here story here:
Origin stocks up on good news from Brookfield and EIG Group
By Rhiana Whitson
Looks like the concerns of some analysts that the federal government's cap on gas prices would threaten Brookfield's takeover of Origin Energy were unfounded.
Origin Energy says takeover bidders Brookfield and EIG Group have found "no material adverse issues" in their due diligence.
The Canadian asset manager Brookfield and US energy investor EIG have put forward an $18.4 billion takeover offer for the Origin - they'll split the company's assets between them.
Origin is Australia's top energy retailer and second biggest power producer.
It's extended its suitors' exclusivity period to January 16 to give them more time to finalise their offer of $9 a share.
"The Consortium has confirmed that it is on track to complete its due diligence early in the new year, it has not identified any material adverse matters to date, and it continues to work on confirming its Indicative Proposal," Origin said in a statement.
The stock had been trading more than 20 per cent below the offer price amid speculation the consortium might walk away from the deal after the government this month moved to cap prices.
RBC Capital Markets analysts, who earlier raised concern that the government's market intervention could derail the deal, on Wednesday said they think "the market has overstated the potential impact of deal completion risk".
If the takeover goes ahead, it would one of the biggest private equity-backed buyouts of an Australian company and the largest deal in the country this year.
Brookfield is looking to speed up Origin's transition to cleaner energy, while MidOcean Energy wants Origin's gas business as the base for a new global liquefied natural gas (LNG) company.
Origin stocks are up almost 6 per cent to $7.50.
ABC News/Reuters
This analysis piece from ABC News Business Editor Ian Verrender about the claims coming from gas companies is worth a read:
Snapshot of ASX 200 top stocks
By Rhiana Whitson
The ASX 200 is having a good trading session, gaining 100 points or 1.4 per cent to7,124.30
All 11 sectors are higher. Here's a snapshot of how the day is panning out.
Here's a wrap of what's happening on the ASX 200
By Rhiana Whitson
The ASX 200 is up 95.3 points or 1.36 per cent to 7,119.60
Miners and energy stocks added more than 1 per cent each and were among the top gainers on the index.
Iron ore giant BHP rose 1 per cent, while oil and gas major Woodside Energy jumped 1.9 per cent.
Financials inched 0.3 per cent higher, with the "Big Four" banks rising between 0.2 per cent and 0.4 per cent.
Tech stocks are up 1.3 per cent.
Strong bullion prices have lifted gold stocks by nearly 5 per cent.
The sub-index has posted its sharpest gains since November 11.
TPG Telecom fell 2.7 per cent after the ACCC blocked its network sharing agreement with Telstra, saying the deal would significantly weaken competition.
ABC/Reuters
Here's the latest update about disgraced FTX founder SFB
By Rhiana Whitson
FTX founder Sam Bankman-Fried has signed legal papers paving the way for his extradition from the Bahamas to the United States where he faces fraud charges.
Read more here:
Telstra to appeal ACCC decision on network sharing agreement
By Rhiana Whitson
Telstra is going to appeal the ACCC's decision to block the regional mobile sharing network it proposed with TPG.
Under the plans, TPG would decommission or transfer its mobile sites in regional and urban fringe areas to Telstra.
The ACCC reckons the deal would result in less competition and would not be good for consumers.
Telstra CEO Vicki Brady disagrees.
She says the competition regulator’s decision is "extremely disappointing."
"Particularly considering the overwhelming support the proposal received from regional customers and community groups who participated in the consultation process," Ms Brady said.
“This decision is a massive missed opportunity for the people, businesses and communities of regional Australia," she said.
“This innovative agreement will deliver real competition-driven benefits for regional Australia, something recognised by the ACCC in its determination.
“It also delivers better use of the Government’s spectrum assets by unlocking unused spectrum that TPG holds in regional Australia but isn’t using."
ASX off to a good start
By Rhiana Whitson
The ASX is open.
As expected, the benchmark index is up about 1 per cent to 7,095.40.
These are the top stocks, at 10:15am AEDT. Keep in mind, there is a bit of a lag in the online figures.
ACCC blocks Telstra, TPG merger
By Rhiana Whitson
The competition watchdog has said no to the Telstra-TPG regional mobile sharing network proposal.
Under the plans, TPG would decommission or transfer its mobile sites in regional and urban fringe areas to Telstra.
By using part of the Telstra network, TPG’s coverage would grow from 96 per cent to 98.8 per cent of the population.
Basically, the ACCC thinks the deal would result in less competition and would not be good for consumers.
This is what ACCC Commissioner Liza Carver had to say about the decision to block the deal:
“We examined the proposed arrangements in considerable detail. While there are some benefits, it is our view that the proposed arrangements will likely lead to less competition in the longer term and leave Australian mobile users worse off over time, in terms of price and regional coverage,” Ms Carver said.
“Mobile networks are of critical importance to many aspects of our lives, including our livelihood, our wellbeing and our ability to keep in touch with friends and family. Any reduction in competition will have very wide-ranging impacts on customers, including higher prices and reduced quality and coverage.
“Mobile network operators compete on price and a user’s package inclusions, but importantly, they also compete on coverage, speed and other quality dimensions that are directly influenced by the nature and extent of their underlying network infrastructure.
“Entering into the arrangements proposed by Telstra and TPG will represent a significant change to the structure of the market that would have long-term consequences.”
Elon Musk looks for new Twitter CEO
By Rhiana Whitson
It's a bit hard to keep up with Elon Musk news, isn't it?
Remember when just a couple of days ago he asked Twitter users if he should stay or go? Most said go.
Apparently, he's acting on the result.
Read more here:
Nike stocks surge after jump in revenue and earnings top expectations
By Rhiana Whitson
Nike beat Wall Street estimates for quarterly revenue.
The sportswear brand says persistent demand for its sneakers and sportswear in North America and Europe helped offset a sales slump in China, its most profitable market.
Shares of the company rose about 7 per cent in extended Wall Street trading.
Nike reported a sales jump of 30 per cent in North America, its largest market, while its China business posted a 3 per cent decline after COVID-related restrictions in the country hurt sales in the region.
Analysts have said the company's efforts to offer big discounts to get rid of excess inventory could help Nike boost sales and attract recession-wary shoppers.
However, the company's profit margins were pressured by a stronger dollar, higher freight and logistics costs, as well as higher markdowns to clear excess inventory.
The company's gross margins decreased 300 basis points to 42.9 per cent, while net income for the reported quarter was flat on a year-over-year basis.
The world's largest sportswear maker's revenue rose 17 per cent to $US13.32 billion for the second quarter beating analysts' estimates of $US12.57 billion, according to IBES data from Refinitiv.
ABC/Reuters
Here's a snapshot of top sectors and stocks on the S&P 500
By Rhiana Whitson
Wall Street's closed. This is what went down (and up)
By Rhiana Whitson
US investors shook off concerns about interest rates, after the Bank of Japan (BoJ) moved to widen its cap on the country's 10-year bond yield.
Stocks went down after the decision, but recovered in afternoon trade.
The Dow Jones rose 0.3 per cent to close at 32,849, the S&P 500 added 0.1 per cent to 3,821, while the Nasdaq Composite lifted by 0.1 per cent to 10,547.
