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The Markets Brief – May 14, 2026

May 14, 2026

The Markets Brief

ASX Pre-Market · 7:30am AEST

Opening Note

Overnight US markets split along growth and value lines: the Nasdaq gained 1.20% to 26,402.3 and the S&P 500 added 0.58% to 7,444.2, while the Dow slipped 0.14% to 49,693.2. The AUD strengthened 0.25% to 0.7262 against the USD, reflecting broad risk-on sentiment as markets digested Kevin Warsh's confirmation as Federal Reserve chair. For the ASX, Wednesday's session closed at 8,630.4, down 0.46%, dragged lower by the banking sector selloff triggered by Labor's budget changes to negative gearing and capital gains tax. At Thursday's open, technology and materials names may find support from the Nasdaq rally and US-China trade optimism, but elevated US 10-year yields — at 4.48% after rising four basis points — remain a headwind for rate-sensitive sectors.

The dominant Australian story is Labor's budget changes to negative gearing and capital gains tax, which triggered the sharpest banking sector selloff in recent memory. CBA fell 10.43% to $153.67, Westpac dropped 2.84% to $35.57, ANZ lost 1.62% to $34.57, and NAB fell 1.50% to $36.86, as markets repriced bank earnings against expectations of weaker property investment volumes and softer mortgage growth. The Coalition has pledged to repeal the measures, but with the budget less than a week old, near-term policy uncertainty remains elevated for the sector.

Watch Aristocrat Leisure (ALL), which surged 13.28% to $51.94 — the session's largest single-stock move — for follow-through or profit-taking at open. BHP (+2.91% to $61.52), Fortescue (+2.78% to $22.52), South32 (+3.22% to $4.49), and Whitehaven Coal (+2.21% to $7.85) are also key: each stands to benefit if Trump's first day in Beijing produces concrete US-China trade signals, which would directly support iron ore and bulk commodity prices.


Markets at a Glance

Indices

ASX 200 8,630.4 ▼ -0.46%
S&P 500 7,444.2 ▲ +0.58%
Dow Jones 49,693.2 ▼ -0.14%
Nasdaq 26,402.3 ▲ +1.20%

FX

AUD/USD 0.7262 ▲ +0.25%
AUD/GBP 0.5363 ▲ +0.39%
AUD/EUR 0.6195 ▲ +0.47%
AUD/JPY 114.4310 ▲ +0.29%

Rates

US 10Y 4.48% ▲ +0.40%

Commodities

Gold $4,697.10 ▼ -0.13%
WTI Oil $101.00 ▼ -0.08%
Copper $6.62 ▼ -0.41%

Crypto

Bitcoin $79,396 ▼ -1.35%

ASX Market Movers · Previous Session

▲ Top Gainers

ALL

Aristocrat

$51.94 ▲ +13.28%

SGP

Stockland

$4.00 ▲ +4.44%

CAR

CAR Group

$26.91 ▲ +3.42%

S32

South32

$4.49 ▲ +3.22%

BHP

BHP

$61.52 ▲ +2.91%

FMG

Fortescue

$22.52 ▲ +2.78%

IGO

IGO

$9.01 ▲ +2.39%

WHC

Whitehaven Coal

$7.85 ▲ +2.21%

▼ Top Losers

CBA

CommBank

$153.67 ▼ -10.43%

WTC

WiseTech

$38.53 ▼ -3.19%

WBC

Westpac

$35.57 ▼ -2.84%

AMC

Amcor

$53.90 ▼ -2.44%

ANZ

ANZ

$34.57 ▼ -1.62%

NAB

NAB

$36.86 ▼ -1.50%

REA

REA Group

$171.00 ▼ -1.02%

COH

Cochlear

$100.06 ▼ -0.98%

ASX Focus

Overview

CBA fell 10.43% to $153.67 on Wednesday as Labor's budget changes to negative gearing and capital gains tax triggered a broad banking sector selloff, with Westpac (-2.84%), ANZ (-1.62%), and NAB (-1.50%) all declining sharply.

The Guardian

CBA leads banking rout as budget CGT and negative gearing changes hit sector

CBA fell 10.43% to $153.67 on Wednesday — its steepest single-session decline in recent memory — as Labor's budget changes to negative gearing and capital gains tax raised market concerns about reduced property investment volumes and slower mortgage demand. Westpac (-2.84% to $35.57), ANZ (-1.62% to $34.57), and NAB (-1.50% to $36.86) also sold off sharply as investors repriced earnings expectations across the major lenders.

Financial Review

Trump in Beijing lifts ASX miners; BHP, Fortescue, South32 all gain

ASX mining stocks rallied on Wednesday as Trump's arrival in Beijing and demands for China to open its market to US business raised hopes of a US-China trade thaw that would support commodity demand. BHP gained 2.91% to $61.52, South32 added 3.22% to $4.49, and Fortescue rose 2.78% to $22.52 — all sensitive to iron ore and bulk commodity prices tied to Chinese industrial activity.

Financial Review

Fundies warn retail sector a 'graveyard' despite SkinKandy IPO buzz

Fund managers are warning that the Australian retail sector faces structural headwinds despite investor interest in the upcoming SkinKandy IPO. The caution reflects ongoing pressure on consumer discretionary stocks from elevated cost-of-living conditions and softening household spending.


Macro & Policy

Overview

Labor's 2026-27 federal budget changes to negative gearing and capital gains tax are the defining Australian macro event, triggering a sharp repricing of the banking sector and an immediate Coalition pledge to repeal both measures.

The Guardian

Coalition vows to repeal Labor's 'toxic' negative gearing and capital gains tax budget changes

Labor's 2026-27 budget includes changes to negative gearing and capital gains tax that the Coalition has pledged to repeal, describing them as "toxic" for property investors. The announcement triggered an immediate selloff across the banking sector — CBA fell 10.43% — as markets priced in lower property investment activity and weaker mortgage growth for the major lenders.

The Guardian

US Senate confirms Kevin Warsh as Federal Reserve chair, replacing Jerome Powell

Kevin Warsh was confirmed by the US Senate as the new Federal Reserve chair on Wednesday, replacing Jerome Powell. His confirmation comes as April US inflation data is applying immediate pressure to raise rates — US 10-year yields rose four basis points to 4.48%, tightening the global rate environment for Australian investors.


Commodities

Overview

OPEC crude production fell 1.7 million barrels per day in April, providing a supply floor under WTI oil at $101.00, while gold held near record levels at $4,697.10/oz despite India hiking import tariffs on precious metals to 15%.

Anadolu Ajansı

OPEC crude production drops 1.7 million bpd in April

OPEC crude production fell by 1.7 million barrels per day in April, tightening global supply and providing a floor under WTI oil, which closed at $101.00 on Wednesday. For the ASX, sustained high oil prices support the revenue outlook for Woodside and Santos, while reinforcing the inflationary pressures that are keeping global central banks in a tightening posture.

Discovery Alert

India raises gold and silver import tariffs to 15% in 2026

India has raised import tariffs on gold and silver to 15%, dampening demand from the world's second-largest gold consumer. Gold closed at $4,697.10/oz on Wednesday, down 0.13%, with the tariff change representing a medium-term headwind for gold prices and ASX-listed gold miners.


Global Markets

Overview

The Nasdaq rose 1.20% to 26,402.3 and the S&P 500 gained 0.58% to 7,444.2 overnight, but Kevin Warsh's confirmation as Federal Reserve chair and April's inflation surprise pushed US 10-year yields four basis points higher to 4.48%.

MarketWatch

April's inflation spike leaves Warsh and the Fed zero excuses not to raise rates

April US inflation came in higher than expected, immediately piling pressure on newly confirmed Federal Reserve chair Kevin Warsh to raise rates at the next opportunity. US 10-year yields climbed to 4.48% on Wednesday — a direct headwind for rate-sensitive ASX sectors including banks, REITs, and infrastructure, which are already under pressure from domestic budget uncertainty.

MarketWatch

The world lost nearly 1 billion barrels in oil supply over the past 75 days. Why investors aren't worrying enough.

Global oil supply has declined by nearly 1 billion barrels over the past 75 days, a scale of tightening that markets may be underpricing with WTI at $101.00. For Australian investors, sustained high oil prices support ASX energy producers while feeding the global inflation backdrop that is pushing central banks toward further rate increases.


The Number

-10.43%

CBA's single-session fall on Wednesday — its steepest in recent memory — driven by Labor's budget changes to negative gearing and capital gains tax, which markets read as a direct headwind for property investment volumes and bank mortgage growth.

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