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ASX Live Updates – Tuesday, May 13
Welcome to our live coverage of the Australian Securities Exchange (ASX) for today. We appreciate your engagement as we trial this live update format. Remember to refresh the page for the latest updates, and feel free to provide feedback to help us improve.
Broker Ratings Update
[8:45 am] Here’s a summary of the latest broker updates:
- Catapult Group: Initiated with a Buy rating, target set at $5.00 (UBS).
- FleetPartners: Retained as Outperform, target increased to $3.77 from $3.65 (Macquarie Group).
- Perpetual: Upgraded to Overweight from Neutral; target raised to $19.50 from $17 (JPMorgan).
- Pinnacle Partners: Maintained Outperform rating, target lowered to $25.10 from $27.37 (Macquarie Group).
- Super Retail Group: Retained at Neutral, target reduced to $14.10 from $15.40 (Macquarie Group).
Highlights from Livewire Markets
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Woodside’s Transformative Journey
Woodside is poised to evolve from Australia’s largest independent oil and gas enterprise into a significant LNG and infrastructure player. This shift is propelled by a US$17.5 billion investment in Louisiana and strategic partnerships, including a 40% stake sale to Stonepeak. Despite a 46% decrease in share price since September 2023 owing to falling oil prices, Woodside’s ventures into hydrogen (projects such as H2Perth and H2TAS) and a gas supply agreement with BP may solidify its position in the LNG market amidst the energy transition. -
Bitcoin’s Resurgence
Bitcoin has surpassed US$100,000, capitalising on its reputation as a sovereign, fixed-supply asset amid inflation and de-dollarisation. The price surge is further supported by inflows from spot ETFs and the impending 2024 halving. Despite inherent volatility and regulatory challenges, Bitcoin’s diverging trajectory from traditional assets presents an enticing option for risk-tolerant investors, especially with the potential for lenient U.S. crypto policies influenced by upcoming events. - Warren Buffett’s Legacy
Warren Buffett’s recent resignation from Berkshire Hathaway at age 95 marks a pivotal moment in investment history. Over his tenure, he amplified the company’s per-share value by 5,502,284% since 1964. Buffett’s legacy transcends mere financial success; it encompasses vital lessons on disciplined investing, the exponential power of long-term compounding, and the importance of liquidity for seizing opportunities. Successor Greg Abel inherits a financially robust firm well-positioned for future growth.
Market Drivers
[8:40 am] Recently, global equity markets experienced a significant rally following a substantial reduction in U.S.-China tariffs. Key points include:
- U.S. tariffs on Chinese goods will decrease from 145% to 30% over the next 90 days, comprising a 10% reciprocal tariff and a 20% tariff associated with fentanyl.
- Conversely, China is reducing tariffs on U.S. goods from 125% to 10% over the same duration.
- This reduction in tariffs exceeds prior expectations, especially as reports previously suggested a possible drop to 50%.
- Additionally, geopolitical developments show India and Pakistan maintaining a fragile ceasefire, while Ukrainian President Zelensky has proposed peace talks with Putin in Turkey later this week.
Morning Outlook
[8:35 am] The S&P/ASX 200 futures indicate a jump of 97 points (+1.17%) following the recent easing of trade tensions between the U.S. and China. For those new to our updates, be sure to catch up by reading today’s Morning Wrap.
Thank you for tuning in; stay informed as we continue to provide live updates throughout the trading day!
