• ASX regains yesterday’s losses as volatility in the market continues
  • All ASX sectors rose except Energy
  • RBA deputy governor Michelle Bullock says RBA will keep lifting rates


The seesaw game continues as the ASX 200 gained 1.80% on Tuesday, erasing most of yesterday’s losses.

The Energy sector was the standout loser, down by almost 1% while other sectors finished higher.

Global investors were bullish as new UK chancellor Jeremy Hunt scrapped almost all of the mini budget tax cuts announced by his predecessor.

Among the controversial measures to be reversed are plans to cut the basic rate of income tax from 20% to 19% from next April.

The news triggered buy signals on pretty much all major assets in bonds, equities, and the Sterling.

Meanwhile, Chinese economic tzar and premier Li Keqiang said China’s economy was improving, and has called party officials to implement policies that will keep the recovery going.

China has however said it will delay its GDP data meant to be released today, with no explanation given.

In NZ, inflation was much higher than consensus, coming in at 7.2% YoY compared to 6.6% consensus.

Back home, investors digested a speech today by RBA deputy governor, Michelle Bullock.

Bullock said the outlook for the global economy is “quite worrying”, which will have implications for Australia.

She also said the RBA will keep lifting interest rates to convince Australians that high inflation will not be a permanent feature of the economy.

And since the RBA meets much more frequently than its peers ( 11 times a year), Bullock said: “It means that we can increase rates at every meeting and we can achieve a similar rise but in smaller increments.”

Tech stocks meanwhile led the ASX advance today, up 2.5%, following a rally on US megacap techs on the Nasdaq overnight.

Financial stocks climbed 2% as Westpac (ASX:WBC) confirmed that it was in talks to acquire Tyro Payments (ASX:TYR).

The $825m market capped Tyro was already in a takeover play in September when it rejected a bid from a Potentia-led private equity consortium.

Looking ahead to tonight’s Wall Street session, due for release are the US industrial production for September and the NAHB housing market index.



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Ship builder Austal (ASX:ASB) rose almost 2% today despite being fined $500k after the Federal Court ruled in favour of corporate watchdog ASIC over continuous disclosure laws. The court also ordered CEO David Singleton to pay a $50k fine.

Telix Pharma (ASX:TLX) rose around 10% after releasing preliminary data from two separate studies of TLX250-CDx (89Zr-DFO-girentuximab) in triple negative breast cancer (TNBC) and non-muscle-invasive bladder cancer (NMIBC).


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Brambles (ASX:BXB) was down slightly after reaffirming its guidance for FY23. The company also said it expects improved free cashflow after dividends in FY23,

Coal miners declined with Whitehaven (ASX:WHC) down by almost 5%.

Although there were no specific news, energy stocks might have taken a hit today as reports swirled that China aims to boost its annual energy production to more than 4.6 billion tonnes of standard coal, a 12.7% rise in output from 2020.