Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

The ASX 200 (XJO) keeps sinking, Tesla (TSLA) stock price falls

The S&P/ASX 200 (INDEXASX: XJO) and All Ordinaries (ASX: XAO) were as much as 1.1 per cent higher during Thursday’s session following the US Federal Reserve’s decision to hike interest rates by 0.75 per cent. But ultimately finished 0.1 per cent lower. By Friday midday, the ASX 200 was again trading lower, this time down 2%.

Woolworths weighs on ASX 200

The ASX 200’s major detractors were the consumer staples and utilities sectors, falling 1 and 1.6 per cent with the latter hit by the nationalisation of the energy system. The Woolworths Ltd (ASX: WOW) share price fell 1 per cent after announcing they would hold the prices on a number of staple products like flour, reducing profit margins, but easing the stress on consumers.

The energy and property sectors were the standouts up 0.5 and 1.5 per cent with Whitehaven Coal (ASX: WHC) a key contributor as the outlook in China improved. The unemployment rate hit a 48-year low of 3.9 per cent after 69,000 more people found jobs in May, with the participation rate also increasing to 66.7 per cent.

However, in a sign of the challenges to come, the New Zealand economy, which was early on interest rate hikes, reported a 0.2 per cent contraction and annual growth of just 1.2 per cent as inflation and the wealth effect started to bite.

Link Group gets sued, Australian Ethical issues guidance

It was a rough day for Link Administration Ltd (ASX: LNK), the majority owner of the Pexa Group (ASX: PXA) platform used for property settlements. Link announced itr had been targeted in a lawsuit by a UK-based legal firm over their administration of the collapsed Woodford Fund. The fund was frozen, leading to losses for thousands of investors, with Link denying the claims.

However, Link’s 10 per cent fall in share price was primarily due to the ACCC’s announcement that it had competition concerns about the takeover of Link by legal player Canadian Dye & Durham. The ACCC flagged potential issues with the acquirer’s role in the property settlement sector and potential dominance of the market through Pexa. The risk that the takeover is pulled grows.

Australian Ethical Ltd (ASX: AEF) shares fell 2.4 per cent after management guided to profit growth of $9.8 to $10.2 million for the financial year, around 9 per cent higher than 2021. This comes after a 3 per cent fall in the Australian Ethical’s assets under management to $6.6 billion after the loss of an institutional mandate.

US stocks drop sharply on recession concerns, Revlon enters bankruptcy

Global markets moved lower once again as the relentless pace of central bank policy changes has raised the risk of a deep recession.

Federal Reserve Chair Jerome Powell flagged another potential 75 basis point hike in July, with the Swiss and UK central banks also hiking this week in an effort to combat inflation. The risk, of course, is that they reverse a decade of job gains and send millions into unemployment once again, particularly given news that a number of economies are already slowing.

The Dow Jones fell 2.6 per cent, Nasdaq 4.5 and the S&P500 3.6 with the tech sector continuing to bear the brunt of the pressure. US new home sales fell by 14.4 per cent in May, much more than economists predicted.

Tesla (NYSE: TSLA) shares fell more than 8 per cent after announcing they would increase the price of their cars due to higher input costs, whilst Revlon (NYSE: REV) shares gained 4 per cent despite the company filing for bankruptcy.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.


Powered by

Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

Skip to content