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ASX Live Coverage: May 16
Welcome to our live coverage of the ASX for May 16. We’re testing this new format, and we encourage you to refresh regularly for updates. Your feedback is invaluable, so please share your thoughts here.
Broker Ratings Update
As of 8:45 am, there hasn’t been much to report, but here are the latest broker ratings:
- Alcoa Corp: Downgraded from Buy to Neutral, target remains at $31 (UBS).
- Insurance Australia: Downgraded from Buy to Neutral, with the target raised to $9.30 from $8.30 (UBS).
- Treasury Wine Estates: Downgraded from Outperform to Neutral; target price reduced to $8.90 from $11.70 (TWE).
Highlights from Livewire
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Bitcoin vs. Gold: A recent article discusses whether Bitcoin might overshadow gold, which has enjoyed a resurgence as a safe haven amid uncertainty. Bitcoin’s price has surpassed US$100,000, buoyed by institutional inflows into ETFs and investment, positioning it as a potent alternative to gold in a fluctuating economic landscape. Read more here.
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Investment Insights: Analysts Will Granger and Marc Whittaker assessed the earnings potential of three ASX companies: Life360, ReadyTech Holdings, and Breville Group, offering a mix of ratings. PWR Holdings and Tabcorp were highlighted as top picks, emphasizing PWR’s growth in aerospace and Tabcorp’s renewed strategy under new leadership. Find more details here.
- The Impact of Policies on Equities: Insights on how President Trump’s tariff strategies influenced market volatility in 2025 are explored. The reduction of tariffs from 30% to 14% relieved recession fears and facilitated a recovery in shares, though ongoing uncertainties could affect medium-term returns. Explore the full article here.
Market Drivers
As of 8:40 am, the mood on Wall Street appeared positive, contributing to a rally in stocks, excluding tech:
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Improving Investor Sentiment: Bullish sentiment from the American Association of Individual Investors (AAII) climbed above 35%, the highest since January, recovering from a recent low of 20.9%.
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Cooling Producer Prices: The US Producer Price Index (PPI) for April dropped by 0.5% month-on-month, surpassing predictions of a 0.2% decline. Core prices also fell by 0.4% against expectations of a 0.3% rise.
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Slight Softening in Yields: Although the US 10-year yield has shown concerning trends, it decreased by 10 basis points overnight to 4.43%.
- Defensive Stock Movements: The Nasdaq broke a six-day winning streak yet remains up over 6% for the week. Meanwhile, defensive sectors such as Utilities (+2.1%), Consumer Staples (+2.0%), and Real Estate (+1.8%) recorded strong performances.
Morning Market Update
Good morning! As of 8:35 am, S&P/ASX 200 futures indicate an anticipated rise of 80 points (+0.96%), potentially extending the market’s current winning streak to eight consecutive sessions. If you’re new to our coverage, catch up with today’s Morning Wrap for further context.
This summary encapsulates the latest developments on the ASX and broader market trends. Stay tuned for further updates throughout the day.
