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May 15, 2026
The Markets Brief
ASX Pre-Market · 7:30am AEST
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Opening Note
Wall Street rose broadly on Thursday, with the S&P 500 gaining 0.77% to 7,501.2, the Nasdaq up 0.88% to 26,635.2, and the Dow Jones crossing 50,000 to close at 50,063.5. US 10-year Treasury yields fell 4 basis points to 4.46%, reducing pressure on rate-sensitive stocks globally. The ASX closed up 0.12% at 8,640.7 on Thursday and is set for a positive Friday open — the overnight US rally and lower yields directly support insurers and banks that led Thursday's gains, with IAG rising 3.68% to $7.88, Macquarie up 3.26% to $244.53, and iron ore majors Fortescue (+2.09%) and Rio Tinto (+1.57%) extending the resource sector's advance. The dominant domestic theme is the federal budget's proposed capital gains tax discount reduction and negative gearing reforms, which drove REA Group down 5.71% to $161.24 on Thursday as investors priced a weaker outlook for property transaction volumes. Opposition Leader Angus Taylor's budget reply pledged to run coal power "long and hard" and scrap EV tax concessions, sharpening the energy and property policy divide ahead of the next election. The AUD/USD eased 0.53% to 0.7223, a modest tailwind for Australian resource exporters reporting in US dollars. Watch Coles (COL) at open after a Federal Court ruled it misled shoppers with its 'Down Down' discount campaign — ACCC penalties remain unquantified but the ruling introduces material regulatory risk for Australia's supermarket sector. Lynas Rare Earths (LYC) fell 9.80% to $17.95 without a direct company announcement; ongoing US-China trade talks may be weighing on confidence in alternative rare earth supply chains. Xero (XRO) shed 9.04% to $73.68 — no direct news catalyst was found across domestic, global, or commodity stories.
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Markets at a Glance
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Indices
| ASX 200 |
8,640.7 |
▲ +0.12% |
| S&P 500 |
7,501.2 |
▲ +0.77% |
| Dow Jones |
50,063.5 |
▲ +0.75% |
| Nasdaq |
26,635.2 |
▲ +0.88% |
FX
| AUD/USD |
0.7223 |
▼ -0.53% |
| AUD/GBP |
0.5383 |
▲ +0.41% |
| AUD/EUR |
0.6186 |
▼ -0.13% |
| AUD/JPY |
114.3400 |
▼ -0.19% |
Rates
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Commodities
| Gold |
$4,655.40 |
▼ -0.54% |
| WTI Oil |
$102.02 |
▲ +0.66% |
| Copper |
$6.58 |
▲ +0.21% |
Crypto
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ASX Market Movers · Previous Session
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▲ Top Gainers
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IAG
IAG
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$7.88 |
▲ +3.68% |
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MQG
Macquarie
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$244.53 |
▲ +3.26% |
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ORI
Orica
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$22.94 |
▲ +2.73% |
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SUN
Suncorp
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$17.12 |
▲ +2.27% |
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FMG
Fortescue
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$22.99 |
▲ +2.09% |
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ASX
ASX Ltd
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$58.52 |
▲ +2.06% |
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CBA
CommBank
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$156.42 |
▲ +1.79% |
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RIO
Rio Tinto
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$191.97 |
▲ +1.57% |
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▼ Top Losers
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LYC
Lynas Rare Earths
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$17.95 |
▼ -9.80% |
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XRO
Xero
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$73.68 |
▼ -9.04% |
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REA
REA Group
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$161.24 |
▼ -5.71% |
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WTC
WiseTech
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$36.67 |
▼ -4.83% |
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COH
Cochlear
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$95.42 |
▼ -4.64% |
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TNE
Technology One
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$27.51 |
▼ -2.86% |
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IGO
IGO
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$8.76 |
▼ -2.77% |
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CAR
CAR Group
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$26.17 |
▼ -2.75% |
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ASX Focus
Overview
REA Group fell 5.71% to $161.24 as the federal budget's proposed CGT and negative gearing changes weighed on property-linked stocks, while a Federal Court ruling against Coles over its 'Down Down' pricing campaign introduces regulatory risk across the supermarket sector.
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The Guardian
REA Group drops 5.71% as budget CGT and negative gearing reforms hit property stocks
REA Group fell 5.71% to $161.24 on Thursday as investors responded to the federal budget's proposed capital gains tax discount reduction and negative gearing changes, which would reduce the tax advantages of investment properties. Lower investment property activity compresses transaction volumes, directly pressuring revenues for Australia's dominant property listings platform.
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The Guardian
Federal Court rules Coles misled shoppers with 'Down Down' discount campaign
A Federal Court found Coles misled consumers by promoting products under its 'Down Down' campaign as price reductions when prices had previously been raised. The ruling exposes Coles to ACCC-imposed penalties and compliance obligations, adding regulatory risk at a time of heightened political and community scrutiny on supermarket pricing.
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Financial Review
Telstra deploys AI to autonomously restart network elements without human intervention
Telstra has deployed AI systems capable of diagnosing and restarting network faults autonomously, removing the need for manual technician intervention in routine outages. The capability signals a meaningful step in Telstra's operational efficiency agenda, with potential to lower network maintenance costs and improve EBITDA margins over time.
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Macro & Policy
Overview
Australia's federal opposition delivered its budget reply with Angus Taylor pledging to run coal power "long and hard" and scrap EV concessions, while the government's proposed CGT and negative gearing reforms continue to reshape how high-net-worth Australians position investment property exposure.
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The Guardian
Taylor vows to run coal 'long and hard' and scrap EV concessions in budget reply
Angus Taylor's budget reply committed the Coalition to extending coal-fired generation and eliminating EV tax concessions if elected, in direct contrast to the government's energy transition policy. The opposing positions create divergent market signals for coal producers and EV-adjacent stocks on the ASX, with election outcome uncertainty delaying capital allocation decisions in both sectors.
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Financial Review
Budget CGT and negative gearing reforms alarm wealthy investors
High-net-worth Australians are reassessing investment property portfolios following the budget's proposed capital gains tax discount reduction and negative gearing changes. If legislated, the reforms reduce post-tax returns on investment properties, with flow-on effects to property transaction volumes and ASX-listed property platforms including REA Group and Domain.
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Commodities
Overview
Gold settled at $4,655.40 an ounce on Thursday, down 0.54% on the session, while the World Bank forecasts precious metals to surge 42% in 2026 — a potential structural tailwind for ASX gold miners if the forecast is realised.
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GoldSilver (via Google News)
World Bank: Precious Metals to Surge 42% This Year
The World Bank has forecast precious metals prices to rise 42% in 2026, citing central bank gold accumulation and sustained safe-haven demand as primary drivers. Gold settled at $4,655.40 on Thursday — down 0.54% on the session but elevated on the year — with ASX gold producers carrying direct exposure to any further price appreciation.
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Mysteel (via Google News)
Iron ore concentrates procurement — Mysteel
Mysteel reports active iron ore concentrates procurement in China, pointing to continued steelmaking demand ahead of the northern hemisphere construction season. Sustained Chinese buying supports the near-term price outlook for Australian iron ore exporters, consistent with Thursday's gains in Fortescue (+2.09% to $22.99) and Rio Tinto (+1.57% to $191.97).
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Global Markets
Overview
US equities rose across the board on Thursday, with the S&P 500 up 0.77% to 7,501.2 and the Dow Jones crossing 50,000, as AI optimism was reinforced by Cerebras Systems' near-doubling on its IPO debut.
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MarketWatch
Cerebras stock rockets out of the gate, in a sign the AI boom is as strong as ever
Cerebras Systems debuted strongly on US markets, with early indications pointing to a near-doubling from its IPO price, reinforcing investor appetite for AI infrastructure. The debut contributed to the Nasdaq's 0.88% gain to 26,635.2 on Thursday and signals continued momentum in AI-related equities with flow-through to ASX-listed technology and data centre exposed names.
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MarketWatch
Nvidia earnings alone won't rescue the S&P 500 from its new sell signal
MarketWatch analysts warn the S&P 500 has generated a new technical sell signal, with Nvidia's upcoming earnings unlikely to single-handedly reverse the trend. For Australian investors with US equity exposure, the signal introduces near-term caution even as Thursday's session closed at 7,501.2.
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The Number
Dow 50,063
The Dow Jones crossed 50,000 to close at 50,063.5 on Thursday — part of a broad Wall Street rally across the S&P 500 (+0.77%) and Nasdaq (+0.88%) that sets a constructive tone for Friday's ASX open.
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