ASX NEWS LIVE | ASX Falls as RBA Keeps Rates on Hold; Gold at Record High

The ASX 200 closed down -0.13 % at 8,142.0 after the market held slightly higher through much of the morning before dropping off around midday.

The big news for today was the RBA’s decision to keep rates unchanged for the seventh consecutive session today.

In her speech after the meeting, RBA Governor Michele Bullock pushed back on talks of earlier cuts, saying:

‘The message clearly from the board is that in the near term, it does not see interest rate cuts’.

Traders largely expected the hold today, with the ASX 200 actually climbing after the decision.

Six of the eleven sectors finished positive today, with Mining (+2.43%) and Energy (+1.53%) stocks carrying through a strong day thanks to policy support from Beijing that could help restore some demand from China.

Consumer staples (-1.86%) fell sharply again today, as supermarket giants Coles (-2.59%) and Woolworths (-2.55%) fell for a second day after the ACCC announced that it was launching a case against the pair for deceptive discount practices.

The Big Four Banks also fell today as a consequence of the RBA’s decision. The moves lower dragged the benchmark down, with CBA down -2.95% at $138.36, NAB down -3.15% at $38.49, ANZ falling -1.96% to $31.09, and Westpac down -2.61% to $32.83 per share.

Meanwhile, with an incredible day on the market, luxury online retail brand Cettire closed the day up by nearly 75% to $2.31 per share after auditors confirmed its FY24 revenue.

This had previously been up for question as prior reports from the AFR had questioned the revenue and tax implications of its drop-shipping sales from luxury brands.

In Michele Bullock’s post-RBA meeting press conference, she said the RBA didn’t consider a rise but is not foreseeing a cut anytime soon, saying:

“We didn’t explicitly consider an interest rate rise because the framing of the discussion was what has changed since last time? And the assessment was, ‘not enough’, and it was mixed enough for us not to change our view from last time.”

 

“Having said that, the message clearly from the board is that in the near term, it does not see interest rate cuts.”

Major banks are now guessing rate cuts are coming early next year, while some traders had held out hopes for cuts this year, it may not be on the cards unless employment figures deteriorate faster than many expect.

The RBA has left rates on hold at 4.35%, as expected by many.

There was little reaction from the ASX as the RBA left interest rates unchanged for the seventh straight meeting.

In the post-meeting statement, the RBA said it left rates unchanged as inflation ‘is proving persistent’.

Despite thisRBA acknowledged that inflation has fallen substantially since the peak in 2022.

“While headline inflation will decline for a time, underlying inflation is more indicative of inflation momentum, and it remains too high,” it said in its statement.

 

“The most recent projections in the August SMP show that it will be some time yet before inflation is sustainably in the target range.

 

“Data since then have reinforced the need to remain vigilant to upside risks to inflation and the Board is not ruling anything in or out.

 

“Policy will need to be sufficiently restrictive until the Board is confident that inflation is moving sustainably towards the target range.”

Looking ahead the RBA noted that ‘there are uncertainties’ in the future outlook, saying:

“The central projection is for household consumption growth to pick up in the second half of the year as the headwinds to income growth recede – but there is a risk that this pickup is slower than expected, resulting in continued subdued output growth and a sharper deterioration in the labour market,” it said in its statement.

 

“More broadly, there are uncertainties regarding the lags in the effects of monetary policy and how firms’ pricing decisions and wages will respond to the slower growth in the economy at a time of excess demand, and while conditions in the labour market remain tight.

 

“There also remains a high level of uncertainty about the outlook abroad.”

Here’s the latest from the new Fat Tail Daily video series.

Publisher James ‘Woody’ Woodburn is away, so this week, Fat Tail Daily editor Nick Hubble will join us to discuss the key trends and offer unique insights into market movements.

Today, Nick spoke with Australian Small Cap Investigator Editor Callum Newman.

Nick and Callum discuss the failed idea of the BRICS, investing in Spain versus Greece, and the nature of fat tail investment ideas.

They also share one fat tail idea going mainstream now.

Click below to watch the discussion.

The ASX 200 is down by -0.37% around noon at 8,122.4 as the market cautiously awaits the RBA’s next interest rate decision at 2:30 pm today.

Seven of the eleven sectors are currently in the green, with Mining stocks leading today, up 1.59%, as Iron ore futures rally nearly 3% after a raft of policy tweaks by China to support its ailing economy.

Financials and Staples are today’s laggards, as Coles and Woolworths see their second day of heavy selling after the ACCC announced it was taking the pair to court for deceptive discount pricing tactics, which they have both denied.

In financials, the Big Four are also facing a sell-down today as markets anticipate rates to remain unchanged at today’s RBA meeting, with CBA, NAB, and Westpac all down around 2%, while ANZ is down -1.42%.

Stand-out performers on the market so far are Tuas, up by +11.37% after releasing its latest earnings for FY24, and Cettire, up around 50% after its FY24 results were confirmed after an audit reviewed its revenue policy with regards to drop-shipping.

The Australian Securities and Investments Commission (ASIC) has called for regulations around the crypto industry this week, saying that crypto financial companies should prepare to be licensed under corporations law. ASIC is due to release updated regulatory guidance within the next two months.

Meanwhile, the Federal Government is preparing new legislation to require crypto exchanges to hold financial licenses and set clear rules for custody of financial assets.

The government’s reasoning has been to reduce consumer risk, but many crypto industry players have pushed back, saying it amounts to government overreach.

Before a major digital asset summit, ASIC commissioner Alan Kirkland said:

‘ASIC’s message is that a significant number of crypto-asset firms in the Australian market are likely to need a licence under the current law. This is because we think many widely traded crypto assets are a financial product.’

 

‘Millions of Australians now hold crypto-asset investments, and ASIC wants to make sure they have access to important consumer protections provided by the current regulatory regime.’

The People’s Bank of China (PBoC) has announced a package of monetary policy easing measures at a press conference today.

As a response we’ve seen China’s 10-year bond yield fall to 2% for the first time on record and iron ore futures spike.

The 10-year yield fell three basis points today, while iron ore futures on the Singapore exchange jumped 2.84% to US$92.00 per tonne.

China’s government bonds have been rallying this year as investors continue to gravitate towards safe-haven assets, fueled by concerns over the economy and the prolonged property crisis.

The relentless rally has stoked concern among authorities that the bursting of a liquidity-fueled bubble could hurt long-term financial stability.

Major miners on the ASX are up today, with Rio Tinto gaining 2.28% to $114.91, BHP gaining 1.78% to $40.52, and Fortescue is up 1.19% to $17.90 per share.

In early trading today we’ve seen another strong session for Uranium stocks after further support in the US.

The uranium stock rally began last Friday when Microsoft announced a 20-year deal to support the restarting of a nuclear reactor on Three Mile Island.

Then overnight, the Global X Uranium ETF continued to climb another 3% after 14 major financial institutions, including Bank of America, Citi, Morgan Stanley, Goldman Sachs, and Barclays, pledged to support nuclear power.

The goal is to triple capacity by 2050 under the COP28 goals. With these banks now pledging, investors are hoping for further financing deals to support the costly construction process needed to build nuclear capacity.

This morning, we’ve seen ASX uranium producers again climb, with:

Paladin Energy up by +4.56%

Boss Energy up by +8.62%

Deep Yellow up by +4.88%

Silex Systems up by +6.23%

Bannerman Energy up by +5.24%

Online luxury retailer Cettire [ASX:CTT] has confirmed its full-year accounts following an audit process that has been ongoing since August.

Cettire released its full-year results in late August but said that the auditor was yet to sign off on the accounts due to questions about its revenue recognition.

These accounts have now been signed off by accountants, who have accepted the company’s view that they are principals and not agents in drop-shipping transactions.

‘Cettire now confirms its FY24 audit process is complete. As a result, the company has published its 2024 annual report, including an unqualified opinion issued by the company’s independent auditor,’ the company said.

Cettire has also announced the appointment of Kelsian director Caroline Elliott as an independent non-executive director.

Cettire’s shares have jumped after the audit, currently up by nearly 50% to $1.975 per share.

The latest ANZ-Roy Morgan Australian Consumer Confidence Survey was just released, showing a 0.8pts.

That puts consumers’ expectations about future household finances at its highest point since January 2023.

While still at low levels compared to prior to the rate-hiking cycle, it seems some households are expecting the light at the end of the tunnel soon.

ANZ-Roy Morgan Aus Consumer Confidence rose 0.8pts to its highest since Jan 2023, on a lift in household confidence in the economic outlook. Confidence about the next 12mths rose 2.7pts and confidence about the next 5y lifted 3.0pts. #ausecon @madelinedunk @cfbirch @RoyMorganAus pic.twitter.com/KoQENeiOKX

— ANZ_Research (@ANZ_Research) September 23, 2024

Good morning. Charlie here,

The ASX 200 Futures point to a flat opening as the Australian sharemarket awaits the widely anticipated Reserve Bank of Australia’s (RBA) interest rate decision at 2:30 pm today.

The decision has widely been picked as another hold by the central bank; however, after the US Fed’s jumbo 50bp cut last week, markets will be watching this decision closer than others.

Wall St ended slightly higher overnight as the euphoria after the cuts eased. Despite the small gains, both the S&P 500 and Dow Jones finished at fresh record highs, while the Nasdaq sits 4% off its high.

Spot gold has been the big winner after the US rate cuts so far, remaining at record levels above US$2,600.

Beyond gold, other commodities remain at weak levels, with crude oil and industrial metals remaining at lower levels as concerns of weakness from China remain.

Yesterday, leaders in Beijing rolled out another minor rate cut. However, the change wasn’t enough to restore confidence in their ailing property market and the wider economy.

Peoples Bank of China (PBoC) heads have scheduled a meeting today that could offer more support to the unsettled market but we’ll have to wait on the details.

On the ASX today, we’ll be watching if Uranium stocks can continue their strong run from yesterday.

Overnight, the Global X Uranium ETF continued to climb another 3% after major financial institutions, including BoA, Citi, Morgan Stanley, Goldman Sachs, and Barclays, pledged to support nuclear power.

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Major Indices
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Country Indices
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Name		Value	% Chg
Commodities (USD)
	Gold	2,626	+0.24%
	Silver	30.71	-1.25%
	Iron Ore	90.95	+1.67%
	Copper	4.2851	+0.08%
	WTI Oil	70.68	-0.44%
Currency
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Cryptocurrency
	Bitcoin (USD)	63,374	-0.28%
	Ethereum (USD)	2,651	+2.83%