ASX Relief Rally While US Tech Capex Faces Reality Check
Paper Mandate Market & Portfolio Commentary | 19 May 2026
Fund Status:
Bal Start: $1,087,521
Bought None
Sold: None
Bal End: $1,090,809
Cash: $138,343
Market Commentary
Overnight the S&P 500 was flat, the Nasdaq down while the Dow Jones was up. US 10Y yields are continuing to push higher to 4.60%. Energy (+1.81%) led the market driven by ongoing Middle East tensions. The International Energy Agency (IEA) warned that global oil inventories are declining, the Q2 2026 drawdowns are averaging 8.5 million barrels per day. The Tech sector, once again, the laggard of the group (-0.97%). There appears to be a bit of a question mark around the capex spend for DCs and fabs. Seagate CEO spoke at the JPM conference saying that new fabs would take too long to build. Lululemon is in a turnaround battle with founder Chip Wilson. A proxy vote to shake up management is set for June. NextEra Energy agreed to buy Dominion Energy in a deal worth ~$67bn. This would be the world’s largest electric utility company. Lastly, China industrial output was below expectations, rising 4.1% yoy. Manufacturers have been affected by oil prices and have had margins shrink as well as production reduced due to costs rising. ASX futures are up as per Bloomberg news. Doubtful the ASX will have an up day.
The ASX 200 actually did rally, ending the day up +1.17%. Sentiment seems to have shifted into a conservative risk-on mode after President Trump called off planned military strikes on Iran. This sent oil lower and pulled benchmark bond yields down from their highs. This triggered a rotation into defensive shares and interest rate sensitive sectors. Consumer Staples (+3.0%) led with Woolworths up +3.7% following a JPMorgan upgrade. Communication Services (+2.66%) and Financials (+1.72%) were also up on the day. Conversely, Materials and Tech were slightly down.
Portfolio Commentary
OBM rallied another +6.2% on the back of its “DRIVE to 300” strategy. MP1 announced a solid board update by bringing on former JPMorgan Jon Gidney to lead its Audit & Risk Committee, although the price fell -2.1% as it was caught in the Tech sector selloff. 360 was down -1.2% while ZIP continues its rollercoaster ride, dropping -5.4% as a result of consumer spending jitters. COL gained +2.7% showing to be a defensive performer, despite the recent regulatory slap on the wrist.
Investment Activity
Did not trade.
Disclaimer: This is a paper portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.