After early gains, the ASX ended up in the red.
The S&P/ASX200 was down just 1.80 points to 6,817.50. Over the last five days, the index has gained 4.00%, but is down 8.42% for the last year to date.
Of the sectors, Energy was the biggest winner with a 2.21% gain, while Real Estate was the biggest loser dropping 0.87%.
In the news today
Stage 3 tax cuts: will they or won’t they
Treasurer Jim Chalmers has said the government’s stage three tax cuts would be implemented; however, the language being used doesn’t instil too much confidence.
"No responsible government can ignore a high and rising inflation, a deteriorating global situation, or the fact that we have got these persistent structural pressures on the budget … We need to make sure that spending in the budget is responsible, affordable, sustainable and sufficiently targeted to the pretty substantial challenges that we confront," Chalmers said.
"My job, as the treasurer of this country, is to make sure that the budget is on as sustainable footing as it can be to deal with the challenges that we anticipate.
"In the context of all of that, we need to make sure we're building our buffers to the extent that we can against what might come at us over the course of the next couple of years and that we're dealing with these challenges which are before us."
"If there's going to be one defining feature in the budget that I hand down in less than three weeks from now, it's going to be responsible economic management.”
So yes, or no?
What’s OPEC doing?
OPEC+ will cut production by 2 million barrels a day to boost oil prices … and put further pain on the pump.
That was good news for energy stocks, with Woodside, Santos and Beach Energy (ASX:BPT) seeing the upside.
Brian Gould, head of Trading at Capital.com Australian headquarters, said of OPEC’s move, “The oil price could not be more politically sensitive right now, as higher prices would only further fuel consumer price inflation globally.
“WTI crude prices drifted from highs above US$122 in June to as little as US$77 in late September, trading around US$15 above the 52-week floor of US$62.50. This trend could potentially not continue following OPEC’s overnight decision to cut production by two million barrels.
“Oil producers have benefited greatly from the price rises that occurred at the beginning of the Ukrainian conflict and they’ll be looking to regain those elevated US$85+ price levels, which they hadn’t experienced since 2014.
“Russia’s treasury would also be a beneficiary, as a higher price would boost revenues from sales, where China and India continue to import just under two million barrels per day, taking advantage of deals and discounts as Western nations turn their back on Russian oil and gas.
“Currently, we’re seeing renewed interest in our crude oil CFDs as speculators try to get ahead of a potential supply squeeze. With decent buying support around the US$80 mark, this could be a popular trade for investors on our platform looking to take advantage of a supply squeeze.”
The benefits of remote work
People management platform Employment Hero recently released the findings of its 2022 Remote Work Report, which showed the benefits of remote working on cost of living pressures.
The report surveyed 1,000 knowledge workers across Australia, whose jobs require them to work predominantly on a computer or with documentation rather than be physically in a specific location.
78% of respondents said working remotely at least some of the time was better for reducing the cost of living, with 51% of workers surveyed earning a second income and 24% working a second job to meet cost pressures.
It is younger Australians who are most affected, with millennials most likely to have a second income stream. They are also more likely to have investments in stock and/or cryptocurrency (27%).
Interestingly, (certainly for employers) 50% of hybrid and remote workers would consider quitting their jobs if their employer directed them to return to the office full-time. 61% of millennials said they would quit.
Marginalised groups also feel safer and less likely to face discrimination ort work in a toxic environment.
Essentially, you can’t beat the work-life balance.
“The writing is on the wall for employers who have a choice when it comes to providing remote working arrangements. There is evidence that remote work provides benefits that an office attendance mandate simply can’t match. It is important to care about employees' financial health and overall wellbeing in the current economic climate, and one of the ways to do this is by giving trust and freedom,” Employment Hero chief people officer Alex Hattingh said.
“With the cost-of-living situation worsening, embracing hybrid and remote work makes sense for a happy and productive team - which all businesses aim to achieve.
"Our latest report supports this as 78% of knowledge workers agree that these arrangements help to ease the cost of living. The icing on the cake of giving employees the option of flexible work conditions is that they will thrive more from both a mental health and work-life balance perspective.”
Hattingh continued: “In saying that, working from the office some of the time is not without value. According to our research, some employees still see the benefit of working in an office environment, with 37% of employees stating that their productivity levels are better when working in a hybrid environment and 33% saying their productivity benefits from working in the office.
“With the future of work undeniably hybrid and remote, employers need to look at how they can better support their teams to work to their full potential in each of these spaces.
"This includes providing employees with extra training, career development, and social inclusion strategies to ensure all workers, particularly those from marginalised groups, aren’t disadvantaged in the long term.
"By listening and providing support to your employees, you get to ensure that their self-fulfilment needs are met - this is the way to pave success and happiness in your business.”
Five at five
Triangle Energy “sets the course” for carbon capture storage project with Pilot
Triangle Energy (Global) Ltd said Pilot was set to assume a 60% interest in the Cliff Head oil field and the CCS asset, while Triangle Energy will take up the remaining 40%.
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RemSense secures $500,000 contract for virtualplant generation on behalf of Chevron (NYSE:CVX) Australia
“Virtualplant has application in any industry that operates remote assets either existing or new, as shown by these recent awards," said RemSense Technologies Ltd (ASX:REM) chief digital officer Anthony Roe.
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Taiton Resources launches $10 million IPO to explore the potential for another Olympic Dam story
Taiton Resources Ltd is aiming to raise a minimum of $7 million and up to a maximum of $10 million from its IPO which closes on October 21, 2022.
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Terra Uranium takes to the air for geophysical survey over Eastern Athabasca uranium projects in Canada
Terra Uranium Ltd (ASX:T92)’s HawkRock, Parker Lake and Pasfield Lake projects cover a total area of 775 square kilometres in a region known to host some of the largest and highest grade uranium deposits in the world.
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Fenix Resources passes two million tonnes iron ore production milestone
"In less than two years Fenix has established a highly profitable business in the Mid-West which has created more than 200 new jobs and generated more than $100 million in cumulative net profits after tax,” said Fenix Resources Ltd (ASX:FEX) chairman John Welborn.
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On your six
Atlantic Lithium: Proactive Analyst Ryan Long on the prospects for the Ewoyaa Lithium Project
Proactive Research analyst Ryan Long takes Thomas Warner through Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11)'s pre-feasibility study for its Ewooya Lithium Project in Ghana, before looking ahead to its prospects for further expansion.
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The one to watch
R3D Resources plans to be dividend-paying self-funded explorer
R3D Resources Ltd managing director Stephen Bartrop gives Andrew Scott from Proactive an overview of the explorer/developer.
Watch