ASX Large Caps: Local shares higher as Aussie jobless rises; NZ Ardern calls it a day

• The ASX 200 index extends 2023 gains
• Aussie unemployment increases to 3.5%
• NZ PM Jacinda Ardern resigns

The ASX 200 added another 0.6% on Tuesday as the benchmark index races away to a 7% gain in 2023.

Local investors were buoyant today after Aussie unemployment rate inched higher from 3.4% to 3.5% in December, reducing the possibility of a steep RBA rate hike even further.

The economy shed 14,640 jobs in December, revising the jobless rate up slightly from a 50-year low.

Matt Simpson, senior market analyst at City Index believes a 25bp hike by the RBA is still on the cards for February.

“It’s unlikely to derail the RBA from another 25bp hike in February, especially with inflation continuing to rise, but the RBA will keep a close eye on employment change and unemployment to see if it is the beginning of a trend,” Simpson said.

Aussie government bond yields declined (bond prices higher) and the AUD also depreciated after the release – signalling the market’s expectations of lower rates in the future.

Meanwhile in a shock resignation, NZ PM Jacinda Ardern announced that she will step down from the role.

No matter your political views, the abuse, sexism, and vitriol Jacinda Ardern has had to endure has been beyond hideous. I truly hope she enjoys no longer having to put up with that.

— Daisy Hudson (@daisy_hudson) January 19, 2023

Ardern said she was experiencing burnout in the job, telling this to reporters,” I have given my absolute all to being prime minister but it has also taken a lot out of me.”

“I know what this job takes, and I know that I no longer have enough in the tank to do it justice. It is that simple,” she added.

On the ASX, Energy and Tech sectors lagged on Tuesday while all other sectors gained.

Diversified miner Mineral Resources (ASX:MIN) rose 0.2% after announcing that it will walk away from the takeover bid for Warrego Energy (ASX:WGO).

MIN, who owns a 19.17% stake Warrego, say it’s walking away because ‘gas asset prices in the Perth Basin are now over-inflated’.

Looking ahead to tonight’s session on Wall Street, US stocks that will report their earnings include: American Airlines, Atlassian Corp, Netflix, PPG Industries and Procter & Gamble.

The European Central Bank (ECB) will also release its December monetary policy meeting minutes.

BIG CAP WINNERS

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Nanasonics (ASX:NAN) rose over 8% after reporting profit before tax of approximately $11.4 million, compared with $3.3 million in the pcp.

Transurban Group (ASX:TCL) was up 1% ahead of the opening of the 7.5km M4-M8 link (formerly M4-M5 link) tunnels this Friday. The twin tunnels represent the final development for the $16.8b WestConnex project.

BIG CAP LOSERS

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Netwealth (ASX:NWL) fell 10% after reporting a slowdown in net FUA (funds under admin) inflows. Netwealth’s FUA rose by just 7.4% to $62.4bn in the half year period.

AGL Energy (ASX:AGL) fell half percent after announcing a new CEO and internal pick, Damien Nicks.

Santos (ASX:STO) was down 1.5% after a lower Q4 production due to reduced domestic gas volumes in WA.