PEAK ASSET: ARVO WRAP 9 November: ASX climbs to three-week high; Xero plunges | Australia records biggest income decline in the developed world | Shadow minister says nuclear energy is the answer to Australia’s net zero goals |

On the topic of inflation…

Australian households have suffered the largest fall in living standards of any advanced economy over the past year as high inflation, a rapid increase in mortgage repayments and rising income taxes ravage household budgets.

Inflation-adjusted disposable incomes have hit their lowest level since June 2019 after falling for seven consecutive quarters, newly released data from the OECD show. The data are also adjusted for population growth.

See pic below for more.

Across Markets…

Australian shares climbed for a second straight session to three-week highs as a jump in healthcare stocks offset a big sell-off in tech names.

The S&P/ASX 200 advanced 0.3 per cent to 7014.9 and the All Ordinaries also rose 0.3 per cent. Both indices tracked a subdued Wall Street session amid lingering concerns about the global economy and interest rates.

Healthcare led gains thanks to a 1.8 per cent leap in heavyweight CSL to $252.3. Energy retreated, weighed down by by weaker oil prices overnight, and tech was by far the worst-hit sector as software accounting company Xero plunged 12.4 per cent to $100.47.

It was the biggest laggard on the ASX after its half-year results came in under expectations.

“The market is in no mood for misses even though it was a solid outcome with 21 per cent revenue growth,” said Andrew Mitchell, a senior portfolio manager at Ophir Asset Management. “Australia was a bright spot, beating revenue expectations, but everywhere else was a miss, with UK and North America sales growth disappointing.”

Mining giants pared early gains after iron ore prices bounced off seven-month highs. The benchmark December iron ore on the Singapore Exchange dipped 0.5 per cent to $US124.1 a tonne. Still, Rio Tinto rose 0.6 per cent to $120.20, BHP Group gained 0.6 per cent to $44.95 and Fortescue climbed 1.5 per cent to $23.45.

The major banks were mixed with Westpac down 2.1 per cent as it traded ex-dividend, CBA rallied 1.4 per cent and ANZ lifted 1 per cent.

National Australia Bank fell 0.8 per cent down to $28.94 in a topsy-turvy session as investors digested its results. The lender posted $7.7 billion in cash profit for the 2023 financial year and boosted its final dividend, but it also pointed to a “more challenging environment”.

Source: AFR