The ASX has finished higher, led by resources gains and following in Wall Street's footsteps overnight.
Westpac is now forecasting the cash rate will remain on hold at the Reserve Bank's meeting next week, while Coles' quarterly sales revenue hit $9.7 billion in the three months to March.
Meanwhile, the US economy grew 1.11 per cent in the past quarter, leaving open the possibility of a recession hitting the country later this year.
Look back on the day's financial news and insights from our specialist business reporters as it happened on our blog.
Disclaimer: this blog is not intended as investment advice.
Key events
Live updates
ASX closes higher, led by resources gains
By Kate Ainsworth
The ASX has finished the week up 0.2%, sitting on 7,309 points to end Friday trade.
Over the last five days, the ASX lost 0.3%, and is 3.4% below its 52-week high.
The best performer today was far and away Megaport Limited — sitting up 41.7% (not a typo).
Other top performers included:
- Pilbara Minerals +7.1%
- Paladin Energy +5.2%
- Life360 +4.8%
- Core Lithium +4.3%
But not ever stock had a good day on the market — Syrah Resources had the biggest drop, shedding 8.9%.
Other falls went to:
- Telix Pharmaceuticals -4.1%
- Ampol -3.6%
- Capricorn Metals -3.5%
- Perseus Mining -3%
Coles Group also finished the day down -1.4%, after posting higher than expected quarterly revenues.
And that brings the blog to a close for another week — thanks for joining us throughout the week.
We'll be back to do it all again next week, with all eyes firmly on the RBA's cash rate decision on Tuesday.
See you then!
How the market finished as of 4:30pm AEST
By Kate Ainsworth
- ASX 200 : +0.2% to 7,309 points
- All Ords: +0.3% to 7,501 points
- Australian dollar: -0.3% to 66.10 US cents
- Dow Jones: +1.6% to 33,826 points
- S&P 500: +2% to 4,135 points
- Spot gold: -0.1% at $US1,985.82/ounce
- Brent crude: +0.7% at $US78.88/barrel
- Iron ore: -1% to $US104.15 a tonne
- Bitcoin: -0.7% at $US29,426
Japan's central bank keeps rates at ultra-low -0.1%
By Kate Ainsworth
The Bank of Japan has kept its interest rates on hold at the ultra-low level of -0.1%, but has announced a broad review of its monetary policy.
It was widely expected that the BOJ wouldn't change its yield curve control (YCC) policy, which sets a short-term interest rate target of -0.1%, and a 10-year bond yield around zero.
The monetary policy review helps lay the groundwork for the BOJ's new governor, Kazuo Ueda, to phase out the stimulus program implemented by his predecessor.
The BOJ is also forecasting inflation will hit 1.8% in the current fiscal year, ending in March 2024.
The ASX is still up, but it's a mixed day across the board
By Kate Ainsworth
The Australian stock market is on track to finish April with a 2% gain for the month, after sitting up 0.2% as of 1:15pm eastern.
Looking at the sectors, education, financials, and real estate are the best performers, all up +0.8%.
But utilities, consumer non-cyclicals and healthcare are in the red, down -0.9%, -0.8% and -0.7% respectively.
The top five movers are:
- Megaport +43.2% (and no, that's not a typo — they've had a better-than-expected earning view)
- Pilbara Minerals +6.4%
- Lake Resources +4.8%
- Paladin Energy +4.4%
- Allkem +4.3%
And at the other end:
- Syrah Resources -13.3%
- BrainChip -8.3%
- Capricorn Metals -3.5%
- Northern Star -3.1%
- Perseus Mining -2.8%
Here's how the market's faring at 1:15pm AEST
By Kate Ainsworth
- ASX 200 : +0.2% to 7,309 points
- All Ords: +0.3% to 7,501 points
- Australian dollar: flat to 66.31 US cents
- Dow Jones: +1.6% to 33,826 points
- S&P 500: +2% to 4,135 points
- Spot gold: +0.1% at $US1,989.39/ounce
- Brent crude: +0.3% at $US78.58/barrel
- Iron ore: -1% to $US104.15 a tonne
- Bitcoin: -0.8% at $US29392
Three of the big banks are now expecting the RBA pause the cash rate
By Kate Ainsworth
Westpac has joined ANZ and NAB in expecting the Reserve Bank to leave the cash rate unchanged at 3.6% at the next meeting.
It means CBA is now the only big four bank to still predict a hike — although its economic team have said it is a line-ball decision.
Both Westpac and NAB now believe the cash rate has peaked at 3.6%.
Currently, CBA is forecasting the first rate cut to happen at the end of 2023, whereas NAB, Westpac and ANZ don't see that happening until 2024.
Westpac expecting RBA to keep cash rate on hold at 3.6%
By Kate Ainsworth
Westpac is now expecting the Reserve Bank will leave the cash rate on hold again at its meeting next Tuesday.
Its chief economist Bill Evans says the current cash rate target of 3.6% is now likely the the peak.
Looking at the March quarter inflation report, Westpac says it now looks likely for the RBA board to continue its pause on rates, but it will continue its "clear tightening bias".
"However, as we move through the remainder of 2023 the credibility of that bias is likely to fade," Mr Evans notes.
Westpac says it has always expected May would be the peak of the tightening cycle, and says its forecast cash rate peak is now the current rate of 3.6% — down from its previous forecast of 3.85%.
NAB slashes fixed rates for some, but bumps up variable rates for others
By Kate Ainsworth
It wouldn't be a Friday without some news from one of the big four banks — this time it's NAB.
NAB has hiked the rate on its basic variable loan for new customers by up to 0.05 percentage points.
It's the second time NAB has increased its Base Variable rate for new customers in the last two months, in addition to the RBA's last hike of 0.25 percentage points back in March.
But NAB has also slashed its fixed rate ever so slightly — they're down by up to 0.60 percentage points, following similar moves from rivals CBA and ANZ.
RateCity.com.au's research director Sally Tindall says it's likely fixed rates will continue to come down over the coming months.
"While the majority of banks’ lowest rates are still variable, in the case of NAB and ANZ, their lowest rates are now fixed," she said.
"The catch is, if you want these fixed rates, you have to be willing to lock up your loan for the next three years, a proposition many customers aren’t keen on committing to at this point.
"The cash rate is now at or near the peak, and while Governor Lowe has said it is too early to talk about rate cuts, that’s exactly what many economists are predicting within the next couple of years.
"We expect banks will continue cutting fixed rates over the next couple of months. One of the next cabs off the rank is likely to be Westpac. Its lowest 3-year fixed rate is almost a full percentage point higher than some of its big bank rivals."
Lower wholesale power prices will take time to flow to households, AEMO boss says
By Kate Ainsworth
The latest quarterly report from the Australian Energy Market Operator shows that clean energy is driving down wholesale energy prices — but its CEO says it will take some time to show up in household bills.
The report also says that gas-fired generation has dipped to its lowest level in almost 20 years, while the steady decline of both black and brown coal power shows few signs of slowing.
AEMO boss Daniel Westerman says this will ultimately have an impact on power bills.
"For the quarter around 12% of the time, wholesale prices were either zero or negative and that's typically during the day when the sun is shining very strongly," he said.
"We're seeing more and more renewable energy come online and that is pushing down prices particularly during the day.
"We've got lower prices and lower emissions.
"It does take some time for wholesale power prices to flow through into retail bills but the trends that we're seeing are very positive."
Wholesale power prices fall as renewable energy output surges
By Kate Ainsworth
The latest quarterly report from the Australian Energy Market Operator (AEMO) show surging output from renewable energy sources has pushed power generated from fossil fuels down to record low levels in Australia's biggest energy grid.
That's led to a big fall in wholesale energy prices, with average prices for the three months to the end of March at $83 a megawatt hour — a decrease of 10.5% compared to the previous three months.
The amount of electricity produced by rooftop solar panels jumped by 23% on average, compared to the same time last year, while generation from large-scale wind and solar farms was up 11% as more projects came online.
You can read more on this by energy reporter Daniel Mercer below 👇
Here's how the market looks at 10:35am
By Kate Ainsworth
- ASX 200 : +0.4% to 7,319 points
- All Ords: +0.4% to 7,509 points
- Australian dollar: +0.1% to 66.34 US cents
- Dow Jones: +1.6% to 33,826 points
- S&P 500: +2% to 4,135 points
- Spot gold: flat at $US1,987.05/ounce
- Brent crude: flat at $US78.39/barrel
- Iron ore: -1% to $US104.15 a tonne
- Bitcoin: -0.7% at $US29,431
ASX opens higher as tech stocks follow Wall Street's lead
By Kate Ainsworth
The Australian share market has opened 0.4% higher this morning, following Wall Street's lead overnight.
Tech stocks have largely led the rise, but resources are also on the up.
Here's the top movers so far:
- Core Lithium +2.1%
- BlueScope Steel +2.1%
- Domain Holdings +1.8%
- Aristocrat Leisure +1.7%
- Champion Iron +1.1%
Meanwhile BrainChip Holdings has dropped the most so far:
- BrainChip Holdings -11.9%
- Dominos Pizza -1.2%
- Capricorn Metals -1.1%
- APA Group -1.1%
- ComputerShare -0.8%
Coles quarterly sales jump 7.9% to $8.9 billion as inflation hikes prices
By Kate Ainsworth
Supermarket giant Coles has reported a jump in sales in the past three months, thanks to higher food prices, improved supply chains, and slightly higher consumer spending.
The company said group sales revenue was up $9.67 billion in the March quarter, compared to $9.08 billion a year ago — an increase of 6.5%.
When it comes to the its supermarkets sales revenue, that was up $8.6 billion in March — a 7.9% jump on last year's figures.
Coles says their increase in revenue is linked to the recovery of logistical disruptions from floods in NSW, Queensland and South Australia, and the impacts of COVID-19.
Struggling to get your head around the Stage 3 tax cuts?
By Kate Ainsworth
The sheer scale of the coming Stage 3 tax cuts is hard to fathom — after all, the cost to the national budget is estimated at $243 billion over the next 10 years.
But if you can't put that in perspective (which is perfectly understandable, it's a mammoth number after all) our StoryLab team has visualised it.
You can take a look at it below — and spoiler alert, you'll be scrolling for a while.
Australia's oldest coal-fired plant, Liddell Power Station goes offline
By Kate Ainsworth
It's the end of an era in the the NSW Hunter Valley today, with the closure of the Liddell Power Station.
Liddell was opened in 1971— making it the oldest coal-fired power station in the country.
The final unit will be powered down at the site this morning.
Over its 52-year life, the power station produced enough energy to power all of NSW for 6-and-a-half years.
Energy company AGL says the closure of Liddell will make way for a renewable energy hub.
The company's program director of transtion, Brad Williams, has told ABC Radio they have plans to transform the site to a green energy producer.
"We are looking to rebirth the site into a variety of energy hub projects moving forward," he said.
"So it’s a really unique opportunity there’s fantastic infrastructure here whether that be for a battery, hydrogen development, so really exciting future times ahead."
You can read more about the power station, its history and what the future might look like below:
Medibank receives Deloitte review into cyber attack
By Kate Ainsworth
Health insurer Medibank has confirmed it has received the recommendations from an external review into last year's cyber attack by Deloitte — but hasn't provided any details about what they are.
In a statement to the ASX, Medibank says Deloitte made recommendations to enhance its IT processes and systems and plans to implement all of them, if they haven't been already.
"Medibank has completed a range of enhancements to meet this expectation and the Board will continue to oversee the completion of steps to implement the recommendations to enhance systems and processes even further," said Medibank chair Mike Wilkins.
"From the beginning of this cybercrime, Medibank has continued to prioritise and support the needs and health of our customers and to ensure the earliest possible resumption of normal business operations."
Medibank hasn't said what the recommendations are, and what recommendations it has implemented.
It says the cybercrime is still the subject of a criminal investigation.
Could EVs about to become cheaper?
By Kate Ainsworth
That's certainly the hope of electric vehicle manufacturers who are calling for a fuel efficiency standard that's on par with other countries.
Without implementing world-best fuel efficiency standards, they say Australia will continue to be a dumping ground for polluting cars.
It follows the federal government unveiling its electric vehicle strategy last week, which involves implementing a fuel efficiency standard by the end of the year.
You can catch up on the race to get more electric vehicles up and running in Australia with this video from my colleague, business reporter Rhiana Whitson below:
Argentina's central bank lifts cash rate to 91 per cent
By Kate Ainsworth
Yes, you read that correctly — Argentina's cash rate has risen to 91% after its central bank raised its benchmark by an enormous 10 percentage points (or 1000 basis points) to try and tame inflation.
It's the biggest hike to the country's cash rate since 2019.
Although it sounds like a massive hike (and it is), the central bank last week lifted the rate by 3 percentage points (or 300 basis points) which took the cash rate to 81%.
It's no secret that Argentina has an inflation problem — at the moment, it's running at 104% annually.
If you want to learn more about what life is like in Argentina with its high inflation, I highly recommend this feature by Inga Ting 👇
Business and economy to benefit from migration system shake up
By Kate Ainsworth
Australia's immigration system is set for a major shake up, with the federal government planning to reform its entire approach to visas.
That includes an immediate lift to the minimum wage threshold for skilled workers, tightening rules for international students, and opening pathways for permanency for about 17,000 temporary workers.
It's a major overhaul — and business groups are on board with the changes.
The Australian Chamber of Commerce and Industry CEO, Andrew McKellar, says the reset will be a good thing for business and the economy.
If you missed his chat on The Business last night on this very subject, you can catch up below:
Here's how things are looking at 7:35am AEST
By Kate Ainsworth
- ASX SPI 200 futures: +0.8% to 7,346
- Australian dollar: 66.25 US cents
- On Wall St: Dow +1.6%, S&P 500 +2%, Nasdaq +2.4%
- In Europe: Stoxx +0.2%, FTSE -0.3%, DAX flat
- Spot gold: -0.1% at $US1,987.87/ounce
- Brent crude: +0.8% at $US78.28/barrel
- Iron ore: -1% to $US104.15 a tonne
- Bitcoin: +0.1% at $US29,565
