The local share market had its best day in nine months yesterday with tech and mining stocks pushing the S&P/ASX200 up nearly two per cent to 8870 points. So far this year, the tech index is down nearly 18 per cent with companies like Wisetech Global, Xero, NextDC and TechnologyOne being among the worst performers.  But yesterday they bounced with the tech index up more than three per cent. The real estate stocks also did well even though interest rates are rising. Then there are the miners. The gold diggers led the way yesterday as the price of the precious metal pushed back above $US5,000 an ounce. Newmont, Evolution Mining and Northern Star all jumped sharply. By the close about 90pc of the ASX200 were higher than where they started.

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News in brief

A leadership spill within the federal Liberal Party is likely by the end of the week, with Angus Taylor tipped to challenge leader Sussan Ley.

Israeli President Isaac Herzog is visiting Australia and yesterday warned about a global surge in antisemitism ahead of the Bondi terror attack and put more pressure on the Albanese government and its security agencies over whether more could have been done to prevent it.

Household spending fell in December, complicating the overall economic picture and the future trajectory of interest rates.

Australia’s high net worth investor population has reached a record 760,000, collectively holding more than $4 trillion in investable assets, according to Investment Trends.

The Seattle Seahawks beat the New England Patriots in yesterday’s Super Bowl in front of an estimated 100 million TV audience. But it was all about the advertisements. A 30 second slot cost about $US10 million, up 25pc this year. The Pringles ad, featuring Sabrina Carpenter, seems to have won the poll for best ad of the year.

Fear-o-meter

Ahead of profit reporting season, the ASX’s biggest company, Commonwealth Bank, has gone on a run. CBA is up seven per cent in the past week and has regained the mantle of biggest company over BHP.

The other banks have been strong performers for a while. Westpac is now the ASX’s third biggest company followed by National Australia Bank and ANZ at 4 and 5 respectively.

The big four make up around 20 per cent of the whole market. By contrast, the big three miners – BHP, Fortescue Metals and Rio Tinto – make up about 11 per cent of the market.

The top 20 stocks comprise about 50 per cent of the market, demonstrating how the market is weighted to large caps (though not as much as Wall Street where the big tech stocks are even more dominant).

CBA is the only bank reporting half year results, and that’s tomorrow. It’s notable how investors still like the banks.

Fear & Greed Q+A today

On why investors should brace for volatility this earnings season, and the companies he's watching closely:

 

“I think Woolworths will see some green shoots — maybe pardon the pun if we can call it green shoots for the green retailer. I think we’re expecting to see some better numbers and better momentum, a function of the fact that they’re cycling through some strikes down in Victoria in the prior comparative period.

 

But you also notice anecdotally when you walk the stores at the moment, it just feels like they’re trading them harder. You’re seeing a lot more displays, you’re seeing heavier stock weights, and it’s hard to walk past without seeing a lot of these impulse categories right in front of you at some sharper pricing. I expect that’s going to have some benefit.

 

And then when you think about supermarkets more broadly, it really comes down to the little things. We probably underestimate how much work goes into product positioning, supply chain, and just getting that additional item into the basket, because it all makes a pretty significant impact. Value perception is key. Once you’re in the store, if you trust the pricing, it gives you confidence to pick up products you might not have previously. Woolworths has definitely been leaning into value, and I suspect that’s starting to work — although Coles is also doing a very good job at the moment.”

 

*General information only. Seek professional advice before investing.

Greed-o-meter

Last week the last remaining nuclear arms pact between the US and Russia expired. The New START Treaty - which put caps on the number of nuclear warheads that could be deployed on missiles and bombers - was signed in 2010, and was the latest in a long list of agreements between the two countries since 1972. US President Donald Trump has declared he'd like to keep limits on weapons, but wants China involved in any new treaty.

Source: Federation of American Scientists 2025

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