The ASX 200 has begun the week in the red, following Wall Street, with both US indexes suffering losses after touching record highs in their last trading sessions.
Meanwhile, the cost of oil is rising due to uncertainty over the Iran war, with Brent crude trading at above $US110 a barrel after a surge of more than 3 per cent.
Follow the day’s financial news and insights from our specialist business reporters on our live blog.
Disclaimer: this blog is not intended as investment advice.
Mon 18 May 2026 at 12:11pm
Market snapshot
- ASX 200: -1.4% to 8,511 points (live values below)
- Australian dollar: -0.3% to 71.23 US cents
- Wall Street: S&P500 -1.2%, Dow -1.1%
- Europe: FTSE -1.7% to 10,195 points
- Spot gold: -0.2% to $US4,528/ounce
- Oil: Brent futures +1.9% to $US111.38/barrel
- Iron ore (Singapore): -0.1% to $US110.40/tonne
- Bitcoin: -1.5% to $US77,101
Prices current at around 12:12pm AEST
Live updates from major ASX indices:
Mon 18 May 2026 at 12:09pm
ASX 200 loses 1.4 per cent to start week
A disappointing start to the week shows no sign of turning around.
The ASX 200 has shed more than 100 points to fall by about 1.4% on Monday.
Basic Minerals and Real Estate have been the worst performing sectors, with Energy the only bright spot so far.
The All Ordinaries index is down almost 1.5%
Apart from a slight spike in the first hour, it’s a depressing looking graph.
Mon 18 May 2026 at 12:03pm
Are you a financial buffer person? So is the financial regulator
Some of us live pay packet-to-pay packet but others of us out there do like to keep a little financial buffer in the bank.
So, apparently, does the financial regulator.
Speaking at the Senate Inquiry into Intergenerational Housing Inequity the financial regulator the Australian Prudential Regulation Authority (APRA) says their lending standards include what they term a “serviceability buffer”.
On a question about new homebuyers and mortgage stress, Dr Marion Kohler, General Manager of System Risk said these buffers mean when the bank lends a mortgage they calculate a bit of wriggle room for the borrower into how much they will lend.
“That really builds resilience for borrowers – it asks banks to ensure when they’re writing a mortgage to add on the buffer – meant to account for not just rising interest rates but changes in circumstances,” she said.
“That’s kind of built into our framework – we have not seen changes in the serviceability buffer come up.”
Mon 18 May 2026 at 11:54am
Greenback stronger as oil prices rise
The Australian dollar is heading downwards towards 71 cents to the US dollar.
It’s shed about 0.3% today to trade at 71.25.
But the greenback is firming against most major currencies as fresh Middle East tensions lifted oil prices and a global bond selloff dented risk appetite, while yen weakness kept traders on alert for possible Japanese intervention.
The euro was last at $US1.1609 and sterling fetched $US1.3305, both down more than 0.1%.
The New Zealand dollar was little changed at 58.27 US cents.
The dollar index which measures the greenback against a basket of major currencies, was a touch firmer at 99.393.
“It appears conditions for risk and bonds are deteriorating, and conditions for the dollar rally to extend this week are ripe,” analysts at Barclays wrote in a note.
The yields on benchmark US 10-year notes and the two-year notes, which typically move in step with interest rate expectations for the Federal Reserve, were last at 4.607% and 4.085%, respectively, near their highest in a year.
“Near term, USD may stay better bid on dips if yields remain elevated and markets continue to price a more hawkish Fed reaction function,” Christopher Wong, FX strategist at OCBC, said in a note.
Against the yen, the dollar traded at 158.84, up 0.04% from late U.S. levels, with renewed yen weakness putting investors on alert for possible intervention.
The offshore yuan traded at 6.8163 yuan per dollar ahead of Chinese activity data due later on Monday.
With reporting by Reuters
Mon 18 May 2026 at 11:31am
‘Get the popcorn out’ for release of Nvidia earnings
Many markets observers are counting down to when the Q1 earnings for Nvidia will be released later this week.
The Silicon Valley-based company is the leading supplier of AI chips.
The earnings report is much awaited because Nvidia is considered the bellwether for AI spending and data-centre demand.
US investment firm, Wedbush, predicts the earnings will “comfortably exceed estimates”.
“We expect another ‘get the popcorn out’ moment,” Wedbush analyst Dan Ives said in a statement.
“We fully expect the leading supplier of AI chips will comfortably exceed estimates and guide above Street given continued positive data points in the Asia supply chains as well as accelerated capex spending set up through the rest of 2026 and into 2027.
“We continue to believe Street estimates for Nvidia are being significantly underestimated over the next few years given the global demand story for the AI Revolution.”
The results will be released on Thursday morning, Australia time, at around 6:20am AEST.
Mon 18 May 2026 at 10:55am
Brambles among the top losers on Monday
The ASX 200 has now lost around 1% in the first hour to begin the new trading week.
Brambles, the supply chain pooling company which has more than 12,000 employees globally, has seen its shares drop in value by almost 15% so far.
Also having a poor day is Singapore mobile operator Tuas Ltd (down a staggering 51%) and agribusiness company, Elders Ltd.
At the other end of the scale is Pro Medicus Ltd whose shares are up by more than 8%.
Mon 18 May 2026 at 10:47am
More than 13,000 homes to be built under government housing scheme
If you’re after more details about the federal government’s proposed changes to improve housing supply, a Senate inquiry is looking at Intergenerational Housing Inequity.
At its first public hearing today, Housing Australia chief executive Scott Langford gave the inquiry an update on the government’s plan to build another 40,000 houses in five years.
He said to date there’s been:
–1,432 new homes built
–6,851 under development
–5,000 with planning approval
That’s 13,283 altogether.
Mr Langford said “momentum was building” in the second year of the program.
Mon 18 May 2026 at 10:41am
Rex Airlines faces court
Jasper Wells here, reporting from the Supreme Court of New South Wales, on the ASIC case against Rex Airlines and its directors.
ASIC alleges three company directors and the executive chair misled investors about profitability in an ASX announcement in February 2023.
The February 2023 announcement said they were “optimistic” about profitability, but ASIC alleges they knew about operational losses and didn’t have the forecasts to back up their announcement.
Four months later, in June, Rex announced it was expecting a loss of $35 million for that financial year.
Executive chair Lim Kim Hai is accused of contravening his director’s duties between February and June of 2023 by drafting and approving the announcement, and failing to take steps to stop Rex from breaching continuous disclosure rules.
The other three directors, the Hon John Sharp AM, Lincoln Pan and Siddharth Khotkar, are alleged to have been privy to financial information that should have led them to take steps to correct the announcement.
Mon 18 May 2026 at 10:19am
Poor start to the week for Australian market
The ASX 200 is in gloomy territory on a rainy Monday in Sydney, with wet weather impacting much of Australia’s east coast.
In the first few minutes of the new trading week, the ASX dropped 68 points, or around 0.8%, to trade at 8,630.
The All Ordinaires is down 0.82%, losing 75 points, at 8,870.
May continues to be a largely disappointing month for Australian investors.
Mon 18 May 2026 at 10:17am
Market snapshot
- ASX 200: -1.1% to 8,537 points (live values below)
- Australian dollar: -0.3% to 71.24 US cents
- Wall Street: S&P500 -1.2%, Dow -1.1%
- Europe: FTSE -1.7% to 10,195 points
- Spot gold: -0.7% to $US4,504/ounce
- Oil: Brent futures +1.6% to $US110.96/barrel
- Iron ore (Singapore): -0.1% to $US110.40/tonne
- Bitcoin: -1.7% to $US77,173
Prices current at around 10:59am AEST
Live updates from major ASX indices:
Mon 18 May 2026 at 10:08am
Oil prices hit two-week high
Oil prices have hit their highest point since May 4 after a nuclear power plant in the United Arab Emirates came under attack and as US President Donald Trump is expected to discuss military options on Iran.
Brent crude futures climbed $US1.44, or 1.32%, to $US110.70 a barrel with West Texas Intermediate at $US107.26 a barrel, up $US1.84, or 1.75%.
Both gained more than 7% last week as hopes of a peace deal that would end ship attacks and seizures around the Strait of Hormuz dimmed.
Last week’s talks in Beijing between Trump and Chinese President Xi Jinping ended without an indication from the world’s top oil importer that it would help resolve the conflict.
Drone attacks on the UAE and Saudi Arabia and rhetoric from the US and Iran raised concerns of an escalation in the conflict.
Emirati officials said they were investigating the source of the strike on the Barakah nuclear power plant and that the UAE had the full right to respond to such “terrorist attacks”.
Saudi Arabia, which intercepted three drones that entered from Iraqi airspace, warned it would take the necessary operational measures to respond to any attempt to violate its sovereignty and security.
“These drone strikes are a pointed warning — renewed U.S. or Israeli strikes on Iran could trigger more proxy attacks on Gulf energy and critical infrastructure by Iran or its regional proxies,” IG market analyst Tony Sycamore said.
Trump is expected to meet top national security advisers on Tuesday to discuss options for military action regarding Iran, Axios reported.
With reporting by Reuters
Mon 18 May 2026 at 9:43am
Market snapshot
- ASX 200 futures: -0.4% to 8,618 points
- Australian dollar: -0.2% to 71.36 US cents
- Wall Street: S&P500 -1.2%, Dow -1.1%
- Europe: FTSE -1.7% to 10,195 points
- Spot gold: +0.1% to $US4,537/ounce
- Oil: Brent futures +1.4% to $US110.74/barrel
- Iron ore (Singapore): +0.7% to $US110.77/tonne
- Bitcoin: -1.6% to $US76,836
Prices current at around 9:45am AEST
Mon 18 May 2026 at 9:40am
G7 finance ministers meet in Paris this week
G7 finance ministers and central bankers are due to meet in Paris on Monday and Tuesday this week.
Ahead of the gathering, Eurogroup President Kyriakos Pierrakakis says “opening the Strait of Hormuz is of the utmost importance”.
With the ongoing Middle East conflict after the US-Israel invasion of Iran, we’ve seen Brent crude prices rise 74% year-to-date.
“Opening the Strait of Hormuz and bringing the conflict to a lasting end are of the utmost importance in mitigating the impact on the economy,” Mr Pierrakakis said in a statement.
“The European economy has proven resilient in the face of this energy crisis. Yet, the global economy will feel the pressure — even if the conflict is resolved swiftly.”
The Eurogroup is a body that brings together ministers from the euro area and is being represented at the G7 meeting by Pierrakakis, who is also the Greek finance minister.
The G7′s core members are the US, UK, Canada, France, Germany, Italy and Japan.
“The European economy has proven resilient in the face of this energy crisis. Yet, the global economy will feel the pressure — even if the conflict is resolved swiftly,” Pierrakakis said.
Tight energy supplies and fears of rising inflation have seen long-term borrowing costs lift in several G7 economies.
US Treasury yields spiked on Friday in the wake of poor inflation data as new Federal Reserve Chair Kevin Warsh began his tenure.
The yield on the 30-year bond jumped nearly 11 basis points to yield 5.121%, the highest since May 22, 2025, and nearing the highest since October 2023.
With reporting by Reuters
Mon 18 May 2026 at 9:15am
‘About protecting our national interest’
After hogging the headlines last week, federal Treasurer Jim Chalmers is back in the news this morning.
He has ordered six shareholders to divest their holdings in Northern Minerals in Western Australia after advice from the Treasury and the Foreign Investment Review Board.
The disposal orders relate to six Chinese-based companies and one company based in the British Virgin Islands.
“This decision was entirely consistent with advice from Treasury and the Foreign Investment Review Board, and is about protecting our national interest and ensuring compliance with our foreign investment framework,” the spokesperson said.
“We operate a robust and non-discriminatory foreign investment framework, and will take further action if required to protect our national interest in relation to this matter.”
Meanwhile, Labor’s Tanya Plibersek is also making news with her comments about tax on discretionary trusts.
Read more here:
Mon 18 May 2026 at 8:59am
Market snapshot
- ASX 200 futures: -0.4% to 8,618 points
- Australian dollar: -0.7% to 71.50 US cents
- Wall Street: S&P500 -1.2%, Dow -1.1%
- Europe: FTSE -1.7% to 10,195 points
- Spot gold: +0.2% to $US4,545/ounce
- Oil: Brent futures +0.2% to $US110.56/barrel
- Iron ore (Singapore): +0.7% to $US110.77/tonne
- Bitcoin: -0.4% to $US77,937
Prices current at around 9:01am AEST
Mon 18 May 2026 at 8:54am
Could Australia fill the gap by extracting helium gas?
My ABC News business colleague Alison Branley has written a timely story this morning.
The conflict in the Middle East has threatened one-third of the global helium supply.
Helium can be mined as a by-product of liquid natural gas (LNG) extraction, and experts say there is potential for Australia to export it.
As Alison reports, there are calls to add helium to the critical minerals list to help support industry expansion.
Read more here:
Mon 18 May 2026 at 8:22am
The future of media from the ABC’s managing director
The rapid changes in media have been massive over the past decade, accelerating in recent years with the advent of artificial intelligance.
My journalism career began in 1980 in the pre-computer days of typewriters and telex machines.
It is a totally different world 46 years later, with AI threatening to take away the jobs of many content creators within media, including journalists.
ABC managing director Hugh Marks joined Alan Kohler to unpack it all, including the direction of the ABC, in That’s Business.
It’s definitely worth a listen.
Mon 18 May 2026 at 8:14am
US begins week with new Fed chair
Last Friday was Jerome Powell’s last day as chair of the US Federal Reserve after an eight-year run.
He was first appointed in 2018 and reappointed four years later.
Mr Powell will stay on as a Federal Reserve governor, with that board term running until January 2028.
His successor is the Donald Trump-friendly Kevin Warsh, who has already been confirmed and took over the chair role on May 14.
On Powell’s last day, the US president was in China, having ended his meeting with Chinese President Xi Jinping without major breakthroughs on trade or tangible help from Beijing to end the Iran war.
Global equity indexes fell on Friday while bond yields soared, as investor euphoria over technology stocks gave way to inflation fears and traders raised bets that the Fed would hike interest rates this year.
The S&P 500 and the Nasdaq sold off after climbing to closing records on strength in artificial intelligence-related technology stocks in the previous two sessions.
“There’s a realization that the market had gotten way ahead of itself. It wasn’t paying enough attention to what the bond market and economic data was telling it. It was caught up in this momentum of AI trade,” said Kenny Polcari, chief market strategist at Slatestone Wealth.
“The market is finally paying attention to what the bond market and the economic data is telling it. Inflation remains sticky and is potentially going to move higher in the months ahead.”
With reporting by Reuters
Mon 18 May 2026 at 8:00am
David Beckham makes UK rich list
They used to say Bend It Like Beckham (the name of a 2002 UK film).
Now they could alter it to Earn It Like Beckham.
The former England football captain has become the UK’s first billionaire sportsman, according to the annual Sunday Times Rich List.
It compiles Britain’s wealthiest 350 individuals and families.
Sir David Beckham and his wife, Lady Beckham, are estimated at £1.2 billion ($2.24 billion).
Noel and Liam Gallagher, the brothers from the BritRock band Oasis, are also there, with an estimated net worth of £375 million ($698 million).
On the list for the fifth year in a row are oil and gas tycoons Sanjay and Dheeraj Hinduja — the brothers who run the Hinduja Group — with a combined fortune of £38 billion ($71 billion).
Mon 18 May 2026 at 7:48am
Labor wants to turn back the clock on tax system
We’ll be talking about how last week’s budget will impact Australia’s housing market for the foreseeable future.
Alan Kohler has written a timely column about the changes in our tax system that he says effectively amount to Labor turning back the clock to 1999.
And he says Labor and the Coalition will turn the issue of Australia’s housing crisis into a political contest over the next two years.
Read more here:
