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ASX Live Coverage – Tuesday, April 14
Welcome to our live coverage of the Australian Securities Exchange (ASX) for Tuesday, April 14. Expect a flurry of updates pre-market and continue to check in for more news throughout the day, with the wrap-up around 2:00 PM AEST.
Rare Earth Stocks Gain Momentum
9:05 AM: Local rare earth producers, such as Lynas and Iluka, may see increased activity following a significant price hike announced by major Chinese manufacturers.
- China Northern Rare Earth and Baotou Steel announced a 45% rise in second-quarter concentrate prices to 38,804 yuan (approximately $5,678) per metric ton, marking the highest quarterly jump since China reformed its pricing mechanism.
- Consequently, Baotou Steel Union shares surged by as much as 8.5%, while China Northern Rare Earth gained 3.1% and China Rare Earth Resources and Technology rose by 2.5%.
- The price increases occur in the context of stricter export controls issued by Beijing over the past year, which have disrupted global supply chains in the rare earth sector.
Australia and US Invest in Tronox Refinery
9:01 AM: The Australian and US governments have collaboratively committed up to A$600 million towards critical minerals projects in Western Australia, signifying a significant milestone in their bilateral partnership on critical minerals.
- Export Finance Australia and the US Export-Import Bank each issued letters of support for a rare earths refinery project proposed by Tronox Holdings, which would yield mixed rare earth carbonates utilised in defence, manufacturing, and clean energy.
- Additionally, both agencies offered support for Ardea Resources’ Kalgoorlie Nickel Project, which is home to Australia’s largest nickel-cobalt resource.
- In total, potential financing for both initiatives could reach up to A$1.85 billion.
Goldman Sachs’ Solid Q1 Performance Amid Challenges
8:59 AM: Goldman Sachs reported robust results for the first quarter of 2026, achieving its second-highest revenue figures, largely driven by record equities trading.
- Revenues rose by 14% to $17.23 billion, exceeding estimates by 2%.
- Earnings per share (EPS) were up 24% to $17.55, also beating expectations.
- Equities revenue climbed by 27%, though fixed income, currencies, and commodities (FICC) revenue saw a decline of 10%.
- Preparations for credit losses surged by 9% to $315 million, raising questions among analysts about anticipated trends in wholesale credit markets.
Analysts Anticipate Earnings Acceleration
8:55 AM: Analysts are optimistic about accelerating earnings growth as a means to navigate macroeconomic challenges, suggesting potential market resilience.
- Morgan Stanley notes that median S&P 500 companies are experiencing double-digit EPS growth, the fastest since 2021, while valuations have improved.
- Jefferies emphasises that recent earnings revisions remain positive, with estimates having increased roughly 3% since February’s end.
- Deutsche Bank anticipates earnings growth in the mid-teens for Q1.
- RBC Capital Markets believes the S&P 500 may have reached a bottom following a 9.1% drawdown from January’s highs due to supportive fundamentals.
Rising Tensions in the Middle East Affect Oil Markets
8:50 AM: Recent developments have escalated tensions in the Strait of Hormuz, with the US initiating a blockade against Iran, impacting oil transportation and creating volatility in global markets.
- The blockade is designed to affect the movement of vessels to and from Iranian ports while allowing searches for contraband.
- Both sides have expressed openness to negotiations despite the increasing tensions, with Iran issuing a warning against threats to its shipping infrastructure, heightening the risk of broader conflict.
Oil Output Decline Due to Geopolitical Strain
8:46 AM: A significant decline in oil production from Gulf Arab states has been reported due to disruptions caused by the ongoing conflict with Iran.
- March’s OPEC production plummeted by 27%, with Iraq, Kuwait, and the UAE suffering the most considerable losses.
- Saudi Arabia’s output dropped 23%, relying on alternative export routes compromised by the conflict.
- Notably, Iran’s production has only slightly decreased despite hostilities.
Market Insights: Short Covering and Analyst Perspectives
8:41 AM: Recent data indicates significant short covering in US-listed ETFs as hedge funds adjust their strategies amid geopolitical considerations.
- Goldman Sachs reports that this was the largest short covering day observed in years.
- Analysts are exploring various factors that could create upward momentum in the markets, including a potential rebound in positions and positive seasonality trends heading into Q2.
S&P 500 Resilience Amidst Uncertainty
8:33 AM: The S&P 500 index recently rose, marking a 1.02% gain to reach 6,816 points, its highest level since late February.
- The index has rebounded 8.5% from its March lows and stands flat year-to-date, with market movements being buoyed by diplomatic overtures from Iran toward a potential deal.
Morning Overview
8:24 AM: Opening ASX 200 futures indicate a strong rise of 119 points (+1.33%).
- US markets demonstrated resilience with the S&P 500 stabilising at pre-war levels.
- Boosted by positive geopolitical news, oil prices saw a significant uptick while rare earth and lithium stocks surged due to recent announcements.
- Software stocks experienced a bounce-back after recent declines.
In summary, today’s ASX updates highlight notable movements in the rare earth sector, strategic governmental investments in critical mineral projects, and significant developments in the financial sector with Goldman Sachs’ earnings report. Market sentiments remain cautious amid geopolitical tensions, particularly in the oil sector.
