ASX 200 report:
12 May 2026

The Australia 200 trades  22 points (-0.26%) lower at 8679 as of 2.45pm AEST.

ASX 200 drifts lower amid Budget nerves

ASX 200 is on track to record its 15th decline in the past 19 sessions. After sliding 82 points in early trade to a five‑week low of 8619.1, the index followed a similar playbook to yesterday, where once the initial wave of selling eased, it managed to claw back a decent portion of those early losses.

The soft start to today’s session was driven by a combination of pre‑Budget nerves and renewed geopolitical tension. Tonight’s Federal Budget is expected to deliver significant changes to negative gearing and capital gains tax (CGT), while comments from President Trump that the United States (US) ceasefire with Iran is ‘on life support’ added to the cautious mood and the country’s fuel‑security anxieties.

With residential mortgages making up approximately 45% - 50% of the big four banks’ total assets, they remain heavily exposed to the Australian housing market. Any policy changes in tonight’s Budget that lead to a sustained fall in property prices could increase mortgage stress and bad debts, putting material pressure on bank profitability and their share prices.

ASX 200 stocks

Financials sector

These concerns, coupled with angst ahead of Commonwealth Bank’s third‑quarter (Q3) trading update tomorrow, saw the ASX 200 financials sector fall to a six‑week low.

• National Australia Bank dipped 2.13% to $37.42 ANZ Banking Group lost 1.87% to $35.23
• Commonwealth Bank slid 1.44% to $171.53
• Westpac Banking Corporation declined 0.97% to $36.70.

Information technology sector

ASX 200 information technology (IT) sector dropped to a four‑week low as several high‑profile names came under heavy selling pressure.

• DroneShield dived 14.76% to $3.03 after the company revealed it had received a formal notice from the Australian Securities and Investments Commission (ASIC). The probe centres on the company’s market disclosures and share‑trading activity between 1 and 20 November last year – a highly controversial period in which the then chief executive officer and two directors sold roughly $67 million  - $70 million worth of shares shortly after a botched contract announcement that overstated sales figures
• Life360 plunged 10.79% to $17.94 after its first‑quarter (Q1) update disappointed, cutting its monthly active user guidance due to a technical issue affecting Android phones
• WiseTech Global also struggled, dipping 5.39% to $40.00.

Health care sector

ASX 200 health care sector remains under immense pressure, on track for a fourth straight month of falls and trading at levels last seen in August 2017.

• CSL lost another 2.58% to $98.15
• ResMed dropped 3.63% to $27.58
• Pro Medicus slipped 3.31% to $125.31.

Materials sector

Saving the best for last, the big miners have enjoyed an outstanding session. This strength comes as COMEX copper futures have surged 8.81% this month to US$6.51 per pound, rapidly closing in on the US$6.61 record high printed back in January. Meanwhile, iron ore prices are pushing back toward their highest levels in several months, trading around $111.40 per tonne.

• BHP ripped to a fresh record high of $60.23 before easing slightly to trade 2.85% higher at $60
• Rio Tinto followed suit, trading 3.05% higher at $185.31 after hitting its own record peak of $185.81 earlier in the day
• Capstone Copper added 3% to $13.41
• Fortescue gained a solid 1.77% to $21.80.

ASX 200 technical analysis

After rebounding sharply from its late‑March low of 8262, ASX 200 broke above its 200‑day moving average (MA) on 7 April. Since then, the index has spent the past five weeks trading in a well‑defined sideways range, oscillating roughly 200 points either side of the 200‑day MA, which currently sits at 8804.

While the base case is for this consolidation to continue until there is greater clarity around the reopening of the Strait of Hormuz, several key levels are worth watching.

On the upside, a sustained break above range highs and resistance at 9020 - 9030 would signal the uptrend has resumed and open the path toward a retest of the all‑time high at 9202. On the downside, a decisive break below range lows and support at 8620 - 8600 would indicate a deeper pullback towards 8500 is underway.

ASX 200 daily candlestick chart

• _{Source: TradingView. The figures stated are as of 12 May 2026. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}