ASX falls below 8,600 level while oil rebounds to $US96 a barrel — as it happened

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For the upcoming week, there are 2,707 capital city auctions scheduled, representing a 16.3% increase from the 2,328 auctions held the prior week, according to Cotality.

The increase is predominantly driven by Sydney and Melbourne, with Sydney's volumes rising 33.9% to 1,078 (from 805 last week), and Melbourne climbing 14.1% to 1,199 (from 1,051), says Annabelle Mezieres an economist from Cotality.

"Together, the two largest markets account for roughly 84% of upcoming capital city auction activity, highlighting the heavy influence both cities have on the broader Australian auction market."

Ms Mezieres says outside the two largest markets, activity trends are fairly mixed.

"Brisbane has 205 scheduled auctions, 5.7% above the 194 held last week, while Adelaide is broadly steady at 134 (down 0.7% from 135).

"Canberra is scheduled to see a notable pullback, easing to 79 from 130 the previous week.

"Smaller markets remain subdued, with Perth scheduled for 11 auctions (down from 13), while only 1 is expected in Tasmania."

Following the release of ABS capex data, Belinda Allen, a global markets economist from Commonwealth Bank, says today’s data, as well as other partial data, suggests GDP is expected to print a little softer than she had initially anticipated.

When combined with our estimate for other components, including a revised, higher household consumption estimate, she says her team's preliminary estimate for GDP is 0.2% but will finalise it next Tuesday.

At a high level, the capex data today was strong, according to Ms Allen.

"Real capex rose by 6.5%/qtr and sits 14.6% higher over the year, and the strongest annual growth rate since Q2 12 during the height of the mining boom.

"Investment in machinery, plant & equipment was strong and driven by data centre equipment.

"However, this is all imported and will largely be offset by a large detraction of net exports in the quarter.

"The real impact to the economy will come through eventual productivity improvements and the investment in buildings & structures and the energy component together with the employment involved."

She adds that on this note, the other component of business investment, buildings & structures, showed weakness in the capex data today (‑3.8%/qtr) with non‑residential construction work done rising by 2.5%/qtr in yesterday’s construction work done release.

"Residential investment is also softer than we had expected."

The ASX 200 closed lower, slipping 1.4% to 8,592 points and crossing below its 50-day moving average.

This leaves the ASX 200 poised to finish the month of May in the red, continuing to underperform its global peers, says Tony Sycamore, an IG market analyst.

The big banks continued to struggle, reeling from the fallout of tax changes in the Federal Budget, Mr Sycamore adds.

Let's take a look at the big four: ANZ fell 2.1%, CBA slipped 2%, NAB dipped 1.7%, and Westpac fell 1.4%.

Looking at sectors, Financials finished the day at the bottom, down 1.5%, followed by Technology and Materials, which fell 1.4% and 1.2%, respectively.

Consumer Cyclicals was at the top, up 0.3%, followed by Academic & Educational Services and Industrials, both up 0.2%.

Overall, the market had 56 stocks gaining, 3 unchanged and 141 in the red.

Among companies, the top mover was Siteminder, which rose  9.1%, followed by Centuria Capital Group and Web Travel Group, up 5.8% and 4.5%, respectively.

It wasn't a good day for Genesis Minerals, down 9.7%, followed by Perseus Mining , down 9.3%, and then Eagers Automotive, down 8.4%. 

The Australian dollar is pretty flat, down 0.2% at 71.21 US cents.

How we shop for groceries can become "habitual", which might seem beneficial, but experts say it can be unhelpful when it comes to saving money.

My colleague Amy Sheehan has put together a handy explainer for you.

Read more here.

The far-reaching effects of the conflict in the Middle East are prompting countries and companies to rethink energy investment strategies amid heightened concerns about energy security and the reliability of trade flows, according to a new IEA report.

The 2026 edition of the IEA’s annual World Energy Investment report highlights that the current energy crisis, stemming from the effective closure of the Strait of Hormuz, is changing risk perceptions and bolstering moves towards greater diversification.

"We are in the midst of the largest energy security crisis the world has ever faced – and I believe this will reshape investment strategies globally, with parallels to the major changes the energy world witnessed after the oil shocks of the 1970s," said IEA executive director Fatih Birol.

"We are already seeing intensified efforts by both producer and consumer countries to diversify trade routes and energy sources — such as advancing new pipelines and other supply infrastructure, on the one hand, and turning more to domestically available resources, on the other.

"These range from renewables and nuclear to coal, oil and gas, in some cases — as well as broader measures to strengthen electricity systems, expand electrification and accelerate energy efficiency."

The report projects that global energy investment will reach $US3.4 trillion in 2026, a slight increase year-on-year.

Around $US2.2 trillion is expected to go to grids, storage, low-emission fuels, nuclear, renewables, efficiency, and electrification in 2026, while around $US1.2 trillion is set to be invested in oil, natural gas, and coal.

 Despite higher oil prices, oil investment is expected to decline for a third consecutive year in 2026, falling below $US500 billion.

The report also finds that uncertainty over the duration of the price spike, long project lead times, supply chain constraints and tighter offshore rig markets are limiting near-term spending responses outside the Middle East.

At the same time, natural gas investment is projected to rise to $US330 billion, the highest level in a decade, supported by a wave of new LNG export projects, particularly in the US and Qatar.

An ASX-listed company linked to investors who pumped their money into the now-collapsed Shield and First Guardian funds is suing the financial complaints ombudsman and one of the victims who lost their retirement savings.

ASX listed Sequoia Financial Group, which owns InterPrac Financial Planning, has through a legal challenge, delayed payouts to investors who have made complaints against its financial advisers.

These complaints were made through the complaints ombudsman, the Australian Financial Complaints Authority (AFCA) and would have seen Interprac, which is the licensee for those financial advisers, stump up the funds.

But now Interprac is suing the AFCA over concerns about its jurisdictional coverage. Its legal case names an AFCA determination made in favour of First Guardian investor Melinda Kee, which means that Ms Kee cannot enforce her determination to get her retirement savings back until the outcome of the court case is finalised.

AFCA on Thursday said that it will pause further determinations while the current Federal Court proceedings are underway.

"Court proceedings of this nature can take time and may create uncertainty while the issues are being considered by the Court," it said.

While investigation work on existing complaints would continue, "AFCA will not make formal decisions (determinations) while the court proceedings are underway".

"This means Interprac complaints will be temporarily paused before they progress to final decision‑making stages, including the assessment of loss (loss calculations) and the issuing of Determinations," AFCA said.

"AFCA will continue to monitor this position and may review it if circumstances change.

"Once the court proceedings have concluded and the relevant issues are resolved, AFCA will update impacted consumers on next steps."

I interviewed InterPrac boss Garry Crole last year who said, 'maybe we could have done more' to prevent First Guardian and Shield losses. More on that here:

The Australian Bureau of Statistics (ABS) has said private new capital expenditure (capex) rose 6.5% in the March quarter 2026, up 14.6%  from the March quarter last year.

Tom Lay, ABS head of business statistics, said the lift in investment was the result of investment in data centre equipment, specifically server racks and processing equipment, significantly boosting overall investment figures.

"This quarter’s rise builds on a similar spike in data centre investment recorded in the September quarter 2025."

Non-mining business investment rose 8.8 per cent, while the mining industry was relatively unchanged.

Information media and telecommunications recorded the largest industry increase, up 96.1%, reaching a new record level.

My colleague Emilia Terzon has broken down the main findings from today's Reserve Bank research on housing investment across the nation.

Watch more here.

More on ABS's new household spending.

Ivan Colhoun, chief economist at CreditorWatch, says April’s spending slump is "headline‑ugly but distortion‑heavy".

The ABS has released new data showing household spending fell 1.1% in April 2026.

"The 1.1% monthly fall was much larger than expected, but was driven largely by one‑off reversals in petrol prices, food stockpiling unwinding, and air travel refunds rather than a sudden collapse in demand," Mr Colhoun said.

He adds that underlying consumer demand remains relatively resilient.

"Stripping out Transport and Food, spending only fell 0.2% after a solid March, suggesting households are absorbing cost pressures better than the headline number implies, at least for now.

"Consumers are becoming more defensive, not disappearing.

"Evidence of trading down to cheaper and generic products, alongside weakness in discretionary categories like clothing, points to mounting budget pressure rather than a full pull‑back in spending."

The outlook hinges on energy prices and geopolitics, Mr Colhoun continues.

"May–June data will be critical for inflation and growth signals; a prospective peace deal and fuel price relief could ease cost pressures quickly, while higher interest rates are still expected to slow consumer spending into the second half."

Fresh analysis from the Reserve Bank, released today, paints the clearest picture yet of Australian housing investors.

So who exactly are they? And what does this detailed demographic data tell us about the property market’s winners and losers?

And liquor giant Endeavour Group has announced that it's exiting its vineyards and wineries portfolio.

What does the future of one of Australia’s largest pub and bottle shop owners look like, in a world where people are drinking less? And have we reached “peak wine”?

In the latest episode of ABC Business Daily, our business editor Michael Janda and finance reporter Alicia Barry break it all down for you.

Household spending fell 1.1% in April 2026, according to seasonally adjusted figures released today by the Australian Bureau of Statistics (ABS).

This follows a 1.6% rise in March and a 0.3% rise in February.

Tom Lay, ABS head of business statistics, said the 4.7% drop in transport costs was the main driver for the 1.1% fall in household spending in April.

"Annual household spending was up 4.9% compared to April 2025, slowing from the 6.2% annual rise in March."

The fall in transport spending reflected widespread impacts and responses to the conflict in the Middle East.

Air transport was the largest contributor to the decline, as households scaled back travel in response to broader uncertainties and higher airfares.

Higher jet fuel costs also added to the fall in transport spending, as airlines cancelled routes during the month to keep services viable. The resulting refunds are recorded as a reduction in air transport, according to the ABS figure.

Fuel spending remained elevated compared to before the Middle East conflict but eased in comparison to March. This was supported by the federal government halving the fuel excise duty in response to rising fuel prices, which took place from 1 April.

Experimental data from the ABS suggest that fuel spending increased by 2.0% in April, following a 1.5% fall in March.

"The fuel excise discount provided some immediate relief to household budgets. We also saw spending on public transport ease in states offering free travel, particularly Victoria and Tasmania," Mr Lay said.

A rise in new vehicle sales provided a partial offset to the broader transport decline, ABS says.

Electric vehicle (EV) sales, which have been trending higher over the last year, increased significantly in April as EVs accounted for a growing share of overall new vehicles sales.

This points to a shift in consumer behaviour as households adjust for rising fuel prices.

"Food spending also fell by 1.3%, reflecting a return to normal levels after the higher purchases we saw in March," Mr Lay said.

"The shift towards generic brands and cheaper products in supermarkets continued into April, reflecting ongoing price consciousness among households."

The Australian Banking Association (ABA) has said the most important policy objective of the proposed scam laws is to prevent scam losses in the first place.

As we reported earlier, the federal government released codes for key sectors, including banks, telcos, and digital platforms, setting out what they will have to do by March 31 next year.

ABA CEO Simon Birmingham said Australia’s world-leading ecosystem approach was critical as "scams are a global scourge that no government nor any single industry can solve alone".

"Stopping consumers from being exposed to scams is the best way to drive down losses and make it harder for scammers to operate in Australia," he said.

"Banks particularly welcome obligations that close gaps in scam prevention, such as the other sectors being required to identify who their customers are, as banks are already expected to do.

"Such basic obligations could have a profound impact on ending tragic losses such as those that begin with scam investment advertisements on social media platforms."

Mr Birmingham added that around 90% of scam losses came from individuals losing more than $5,000, and it was critical that the scam laws focused on stopping these life-changing, high-value losses.

Another interesting graph from APRA on the superannuation savings pool.

Look at this chart, it shows a big dive in annualised rates of return:

Australia's superannuation pool has grown massively and is now standing at $4.4 trillion, according to the latest statistics from the prudential regulator APRA.

Total superannuation assets decreased slightly by 1 per cent over the quarter to $4.4 trillion as at March 2026, of which $3.1 trillion was in APRA-regulated funds.

But Australia still remains on track to become the world's second-largest retirement savings pool by 2031.

Total contributions increased by 11.3 per cent to $226.1 billion in the year ending in March 2026.

Employer contributions increased by 8.4 per cent over the year to $159.8 billion.

Member contributions increased by 19.1 per cent over the year to $66.3 billion.

Benefit payments increased by 12.3 per cent to $143.5 billion in the year ending in March 2026.

This increase was the result of lump sum payments rising by 13.6 per cent to $79.7 billion and pension payments increasing by 10.7 per cent to $63.8 billion.

The ASX 200 has extended its loss, falling 1.7% to 8,564 points.

Over the last five days, the index has lost 0.7% and 1.7% year to date.

Meanwhile, the price of oil has rebounded to $US97.75 per barrel, up 3.7%.

Laurence Troy, an associate professor at the University of Sydney, has described the RBA's latest report on housing investment as "good data", adding that it has long been a challenge to obtain "this type of granular information".

"However, it most reveals what I think we all understood anyway," he said, "The skew towards older ages underlies the generational challenges being much discussed at the moment.

"It also reflects what seems to be a wider concentration of ownership. Younger generations are increasingly locked out and only those with property wealth are able to accumulate more.

"The mortgage stats also points to this. Owning property and leveraging this becomes the way to get deposits to further invest."

Professor Troy adds that the missing piece in this report is about market and geographic concentrations.

"New build apartment residential is almost entirely dominated by these buyers, and then in some parts of the city, you also find relative differences in activity.

"There is possibly also an element of where investors live themselves and the extent to which their primary house asset has risen in value over the past decades.

"This spatial lottery would have impacted how much could be extracted through leverage to go out in invest in further property.

"It is another dimension to the inequalities being experienced."

We have reported earlier that a new Reserve Bank research shows the share of housing investors aged over 60 has surged in Australia over the past 20 years, while the share of younger investors has retreated.

• ASX 200: -1.7% to 8,569 points 
  
• Australian dollar: -0.5% to 71.03 US cents
• Wall Street: Dow Jones (+0.4%), S&P 500 (flat), Nasdaq (-0.1%)
• Asia: Nikkei (-1.3%), Hang Seng (-2.3%), KOSPI (-4.4%)
• Europe: FTSE (+0.1%)
• Spot gold: -1.9% to $US4,371/ounce
• Oil: +3.7% at $US97.75/barrel
• Iron ore: -0.1% at $US108.80/tonne
• Bitcoin: -3% to $US72,923

Prices current at around 2:20pm AEST 

Live updates on the major ASX indices:

The ASX 200 is down sharply as the banking sector falls 1%.

The spot price of gold too is off 2%.

The broad thematic is that unresolved geo-political tensions in the Middle East are reintroducing the threat of a global inflation spike.

In addition, changes to the capital gains tax and heightened talk of it today — as it commences its journey through the federal parliament — is seeing money leave the banks.

"On the whole it's still early days in terms of the assessment of how these tax changes are likely to shape investment markets, outlooks and overall bank strategies on lending and housing flows," UBS said in a note.

"High level, the headlines ... suggest the relative 'winners' are likely to be banks with stronger business and institutional banking franchises (NAB and ANZ) and less reliance on investor mortgage beta (CBA and Westpac).

"There are a number of unknown factors which might have an impact on bank share price performance too, such as investors flows, appetite for higher dividend yield stocks and asset allocation/rebalancing."

At its core, the stock market is pricing in negative earnings revisions to mining and banking stocks today.

In terms of the miners, it's negative revisions to gold producers as the precious metal remains in a bear market.