🦘 ASX Week In Review: 08/10/2024

Hey mate, hope you enjoyed the long weekend!

Let’s have a look at the market snapshot before jumping into the news:

Week In Review - TLDR

Hold onto your hats, folks!

This past week has seen quite the spectacle in the commodities market, with oil prices fluctuating, gold hitting record highs, and iron ore surging 15% in just one day.

Oil prices jumped over 3% to about $70.18 a barrel amid rising geopolitical tensions in the Middle East, raising concerns about supply.

Investors are advised to proceed cautiously in the oil sector, especially with so much price uncertainty on the horizon.

On the shiny front, gold is soaring thanks to global troubles, increased central bank purchases, and a 45.7% increase in price over the past year.

It looks like gold is set to remain a favored refuge for investors.

Meanwhile, iron ore’s impressive turnaround was prompted by China's new stimulus policies aimed at reviving their housing market, spelling good news for big miners like BHP.

REMINDER: Tax Deadline Countdown: Avoid a $330 Fine!

Aussies, time is ticking away!

You have until October 31 to get your tax affairs sorted or risk facing a hefty $330 fine.

While some have already jumped on the tax return train, many are still taking their sweet time.

Remember, if you file your tax return late, that penalty can rise by another $330 every 28 days, peaking at a whopping $1,650.

Get moving so you can relax post-deadline. Good luck with those figures!

Australia’s September Housing Update!

Australia's housing market showed signs of slowing down in September, with home prices rising a modest 0.4% - keeping pace with previous months.

The boost in prices came mainly from cities like Perth, which led the charge with a 1.6% increase, and Adelaide close behind at 1.3%.

However, Sydney's gains were slight at just 0.2%, while Melbourne experienced a small dip of 0.1%.

With listings at a three-year high, the market is heating up, but not enough buyers seem to be keeping pace.

Auction clearance rates are now hovering in the low 60% range, indicating more competition for sellers.

Interestingly, rents crawled up by only 0.1% last quarter, easing inflation worries for the Reserve Bank of Australia.

Could interest rate cuts be on the horizon?

It looks likely, which could motivate more buyers to jump back into the market!

Summer Sizzle: Aussie Retail Sales Heat Up!

A sunny surprise in retail!

Australian retail sales rebounded by 0.7% in August, bouncing back from a slow July as warm weather kicked off spring shopping.

This upswing comes as consumers appear to be tapping into extra cash from recent tax cuts, giving them a financial boost. 

According to data from the Australian Bureau of Statistics (ABS), sales reached A$36.5 billion, which, while up 3.1% from last year, still feels a bit sluggish given Australia's booming population.

Warm weather led to a rise in spending on seasonal goodies, from summer clothing to outdoor dining and hardware.

However, not all is rosy.

Recent data suggests that many are using their tax savings to tackle mortgage payments rather than indulge in retail therapy.

With the Reserve Bank of Australia keeping a watchful eye on spending, the stage is set for what happens next.

Labor's Budget Surplus: A Win for Wallets or a Woe for Workers?

Prime Minister Albanese has recently uncorked a bottle of budget surplus champagne, boasting about achieving back-to-back surpluses for the first time in nearly 20 years.

However, it seems the secret ingredient behind this financial feat is a hearty slice of social spending cuts. 

Treasurer Jim Chalmers and Finance Minister Katy Gallagher gleefully applied their “spending restraint” mantra, claiming to have saved a whopping $77.4 billion.

But not so fast! This hasn’t come without consequences. 

Real income for working-class families has plummeted over 8% since Labor took office, while education and health funding has also taken significant hits.

Meanwhile, military budgets are set to see a remarkable increase, and the government’s planned tax cuts seem to favor higher-income households more than struggling families.

As the Labor party tries to placate its corporate backers, the debate is heating up on how beneficial the budget surpluses really are!

REA Group Bows Out of Rightmove Bid, News Corp Cheers the Decision!

After a dramatic showdown, Australia's REA Group has officially walked away from its pursuit of the UK property portal Rightmove.

News Corp’s chief, Robert Thomson, has applauded this move, emphasizing the importance of financial discipline over hastily agreeing to an overpriced acquisition.

Thomson reminded everyone that Rupert Murdoch’s News Corp is the majority owner of REA and praised the savvy moves made in the digital property arena. 

As REA exits, Rightmove faces a tough road ahead in an increasingly competitive market, with its shares taking a hit as a result of the failed bid.

Analysts hinted that REA's offers were seen as opportunistic and ultimately undervalued Rightmove, leaving the latter to refocus on its growth strategy.

With REA's eyes now on other investment opportunities, the property world is bracing for what’s next as the market continues to evolve!

Albo Takes a Stand Against 'Shrinkflation': Supermarket Showdown Ahead!

Australians, get ready for a supermarket shake-up!

Prime Minister Anthony Albanese is on a mission to tackle 'shrinkflation,' where products shrink in size but prices stay sky-high.

Recent findings from Choice reveal that both Coles and Woolworths have been caught using this sneaky tactic on their homebrand goods.

In response, the government is tightening product pricing rules and introducing hefty penalties for any supermarket attempting to pull a fast one.

Albo aims to empower the Australian Competition and Consumer Commission (ACCC) to be the “tough cop on the beat,” ensuring consumers get a fair deal at the checkout.

Expect more transparency with unit pricing as the government seeks to make essential information clearer and easier to compare.

With a fresh $30 million boost for the ACCC to police these practices, it’s clear: dodgy pricing scams are about to face a major crackdown. 

Stay tuned for what this means for your grocery bills!

Brace for Impact: Petrol Prices at Two-Year Low, But Tensions Abroad Could Drive Costs Up

Aussie drivers are enjoying a rare reprieve at the pump, with petrol prices sliding to their lowest point in over two years, currently averaging $1.72 per litre.

But hang onto your hats because that relief could be short-lived!

Recent tensions in the Middle East, particularly Iran’s missile strike on Israel, have sparked fears of intensified conflict that could disrupt oil supplies.

Analysts warn that any fallout could send global oil prices soaring, potentially raising petrol costs down under.

There’s talk that a more aggressive response from Israel could hike oil prices by an additional 20% to 30%, adding around 20 cents per litre at the bowser.

While the hope is for markets to stabilize, global production levels may keep prices in check.

However, the situation is a reminder that in the world of oil, peace can be just as fickle as prices!

Cash for Cribs: NT Rolls Out $50,000 Boost for First Home Buyers!

Grab your hard hats, first-home buyers!

The Northern Territory just launched a super generous housing grant scheme that’s making waves across Australia.

The new initiative provides a whopping $50,000 cash boost for those buying or building new homes in the territory.

If you're settling for a pre-loved place, don’t fret — there’s still a sweet $10,000 grant waiting for you.

And get this: there are no caps on purchase or building prices!

The scheme, dubbed HomeGrownTerritory, is designed to help Territorians navigate the tricky waters of home ownership amid rising living costs.

Plus, if you're already a homeowner wanting to build something new, you can snag a $30,000 grant too!

So, if you're dreaming big, the NT is sending a clear message: come on down and make those home dreams a reality!

Bank Surprise: $28 Million in Refunds Delight Confused Aussies!

Get ready to check your bank accounts, folks!

A delightful mix-up has seen over $28 million refunded to unsuspecting customers by major Australian banks like CBA, Westpac, ANZ, and Bendigo Bank.

The Australian Securities and Investments Commission (ASIC) found that these banks had kept low-income customers, including First Nations members, in high-fee accounts for far too long.

As a result, many customers have already started seeing those sweet refunds in their accounts.

One surprised CBA customer reported receiving $777.64, while another replied with, “I just got paid $475.49? I'm also confused but happy lol!”

From July 2019 to August 2023, millions in fees are being returned to support nearly 87,000 affected customers.

Banks are now being urged to do better for low-income families.

So, keep an eye on your balance – you might just get a pleasant surprise!

6.3 Million Aussies May Be Drowning in Debt!

A recent report from Finder reveals that a staggering 6.3 million Australians feel the pressure to spend beyond their means just to maintain their social status.

That's right - 30% of respondents admitted to making purchases, from dining out to extravagant trips, simply to keep up with their friends or family. 

In an age ruled by social media, many are trapped in a "highlight reel," mistaking others’ curated lives for everyday reality.

The fallout? One in eight consumers - over 3 million people - have gone into debt to keep up appearances.

Experts advise on how to break free from this cycle: keep an eye on your finances, share your saving goals with loved ones, and suggest budget-friendly hangouts. 

So, don’t let comparison steal your financial peace—live within your means and find joy in what you already have!

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