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The Markets Brief – May 19, 2026

May 19, 2026

The Markets Brief

ASX Pre-Market · 7:30am AEST

Opening Note

US markets delivered a mixed session overnight with the S&P 500 essentially flat at 7,403.0, down 0.07%, while the Dow Jones gained 0.32% to 49,686.1 and the Nasdaq slipped 0.51% to 26,090.7. ASX futures point to a muted open following Monday's sharp 1.45% decline that took the ASX 200 to 8,505.3, with rising US 10-year yields at 4.62% likely to keep pressure on rate-sensitive sectors.

The RBA's inflation fight remains the dominant local theme after CommBank noted the federal budget improved the long-term fiscal outlook but left the heavy lifting on inflation to monetary policy. TD Securities analysts indicated RBA rate hike timing remains uncertain, keeping markets focused on upcoming domestic data for direction on when the central bank might next move.

Watch iron ore miners at open after Rio Tinto fell 3.63%, Fortescue dropped 2.88%, and South32 declined 4.28% on Monday. Energy stocks Woodside and Santos, which gained 2.88% and 2.66% respectively, may see follow-through as WTI oil holds above $102. Lynas Rare Earths extended gains with a 5.46% rise to $18.93, continuing its recent momentum.


Markets at a Glance

Indices

ASX 200 8,505.3 ▼ -1.45%
S&P 500 7,403.0 ▼ -0.07%
Dow Jones 49,686.1 ▲ +0.32%
Nasdaq 26,090.7 ▼ -0.51%

FX

AUD/USD 0.7171 ▲ +0.25%
AUD/GBP 0.5334 ▼ -0.50%
AUD/EUR 0.6150 ▲ +0.02%
AUD/JPY 113.7900 ▲ +0.25%

Rates

US 10Y 4.62% ▲ +0.61%

Commodities

Gold $4,570.80 ▲ +0.53%
WTI Oil $102.49 ▼ -0.68%
Copper $6.34 ▲ +1.59%

Crypto

Bitcoin $76,926 ▼ -0.63%

ASX Market Movers · Previous Session

▲ Top Gainers

LYC

Lynas Rare Earths

$18.93 ▲ +5.46%

CPU

Computershare

$32.09 ▲ +3.28%

WDS

Woodside

$32.15 ▲ +2.88%

STO

Santos

$8.09 ▲ +2.66%

REA

REA Group

$164.60 ▲ +1.60%

ALD

Ampol

$35.57 ▲ +1.48%

SEK

Seek

$13.51 ▲ +1.12%

TNE

Technology One

$28.64 ▲ +0.99%

▼ Top Losers

S32

South32

$4.03 ▼ -4.28%

NEM

Newmont

$150.79 ▼ -4.22%

GMG

Goodman Group

$30.12 ▼ -4.02%

AMC

Amcor

$51.44 ▼ -3.94%

RIO

Rio Tinto

$179.01 ▼ -3.63%

SGP

Stockland

$3.83 ▼ -3.53%

COH

Cochlear

$93.52 ▼ -2.92%

FMG

Fortescue

$21.95 ▼ -2.88%

ASX Focus

Overview

Iron ore miners Rio Tinto, Fortescue, and South32 led Monday's ASX 200 decline of 1.45%, pressured by commodity weakness, while energy names Woodside and Santos outperformed on elevated oil prices above $102.

ASX Market Data

Lynas Rare Earths leads ASX gainers

Lynas Rare Earths rose 5.46% to $18.93, the top gainer on the ASX 200. No specific company news accompanied the move.

ASX Market Data

Iron ore miners drag ASX lower

Rio Tinto fell 3.63% to $179.01, Fortescue dropped 2.88% to $21.95, and South32 declined 4.28% to $4.03. The falls reflected broader commodity weakness and concerns over Chinese steel demand.

ASX Market Data

Energy stocks outperform on elevated oil prices

Woodside gained 2.88% to $32.15 and Santos rose 2.66% to $8.09 as WTI crude held at $102.49 per barrel. The energy sector bucked the broader market selloff.


Macro & Policy

Overview

CommBank noted the federal budget improved Australia's long-term fiscal outlook but left inflation management to the RBA, while TD Securities said rate hike timing remains uncertain.

CommBank

Budget improves long-term outlook, but inflation fight left to the RBA

CommBank analysis found the federal budget improved Australia's long-term fiscal position. However, the bank noted inflation control remains squarely with the RBA rather than fiscal policy.

TD Securities via Bitcoin World

RBA Rate Hike Timing Remains Uncertain

TD Securities analysts indicated RBA rate hike timing remains uncertain given mixed economic signals. Markets continue to watch incoming data for clarity on the central bank's next move.


Commodities

Overview

Gold rose 0.53% to $4,570.80 per ounce while copper gained 1.59% to $6.34, though JP Morgan lowered its 2026 gold price forecast citing weak investor demand.

Mint

Gold rebounds as bond yields stabilise

Comex gold rebounded $27/oz as bond yields stabilised, trading at $4,570.80. The move supports ASX gold miners including Newmont, which fell 4.22% on Monday.

Business Standard

JP Morgan lowers 2026 gold price forecast

JP Morgan lowered its 2026 gold price forecast amid weak investor demand. The outlook may weigh on ASX gold producers including Newmont and Northern Star.


Global Markets

Overview

US markets closed mixed with the Dow up 0.32% and Nasdaq down 0.51%, as rising US 10-year Treasury yields to 4.62% kept tech stocks under pressure.

MarketWatch

Options market signals caution ahead of Nvidia earnings

The options market is flashing warning signs ahead of Nvidia's upcoming earnings report. Australian investors with US tech exposure should monitor the result given Nvidia's influence on global tech sentiment.

MarketWatch

Oil market reaching 'tipping point'

A Wall Street strategist warned the oil market is reaching a tipping point that could create problems for equities. WTI crude at $102.49 remains supportive for ASX energy stocks but poses inflation risks.


The Number

$4,570.80/oz

Gold reached $4,570.80 per ounce, reflecting persistent safe-haven demand that supports Australian gold miners despite JP Morgan's lowered price forecast.

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