Daily Market Update: 16 January 2026

Australian market strengthens on mining momentum

The Australian sharemarket advanced on Thursday, with investors rotating funds out of financials and into resource stocks, lifting the S&P/ASX 200 Index (ASX: XJO) by 41.4 points, or 0.5 per cent, to 8861.70. Gains were led by the materials and healthcare sectors, while technology underperformed. BHP Group Limited (ASX: BHP) surged 2.6 per cent to $49.37, touching a 52-week high of $49.75, bringing its market capitalisation close to $251 billion. This performance positions BHP within 2.3 per cent of overtaking Commonwealth Bank of Australia (ASX: CBA) as the largest company on the exchange. MLC Asset Management noted that strong commodity prices and the robust outlook for emerging Asia are fuelling the move.

Bank recovery and sector rotation

After an early dip, shares in Commonwealth Bank of Australia (ASX: CBA) rose 0.4 per cent to $153.50, lifting its market cap to $256.86 billion. Other major banks followed, with Westpac Banking Corporation (ASX: WBC) gaining 0.6 per cent, National Australia Bank Limited (ASX: NAB) up 1.1 per cent, and Australia and New Zealand Banking Group Limited (ASX: ANZ) climbing 2.6 per cent. Among miners, Rio Tinto Limited (ASX: RIO) added 0.4 per cent to $147.20 on plans to cooperate with BHP in the Pilbara, and South32 Limited (ASX: S32) jumped 4.6 per cent as copper prices soared. In healthcare, CSL Limited (ASX: CSL) rose 1 per cent and ResMed Inc. (ASX: RMD) 2.4 per cent. On the downside, tech stocks fell, with Life360 Inc. (ASX: 360) down 5.1 per cent and Xero Limited (ASX: XRO) falling 4.1 per cent amid increased short selling pressure. Treasury Wine Estates Limited (ASX: TWE) declined 4.9 per cent after a downgrade by Citi, while 4DMedical Limited (ASX: 4DX) rallied 5.7 per cent following a successful capital raise.

Global markets rebound on tech and bank earnings

Wall Street bounced back after two days of losses, with strong corporate results and optimism in the artificial intelligence sector driving gains. The S&P 500 Index (NYSE: SPX) and the Nasdaq Composite Index (NASDAQ: IXIC) each rose 0.2 per cent, while the Dow Jones Industrial Average (NYSE: DJI) climbed 292 points. Taiwan Semiconductor Manufacturing Company (NYSE: TSM) delivered strong results and signalled increased capital spending for 2026, boosting shares of AI-linked firms such as Nvidia Corporation (NASDAQ: NVDA), Applied Materials Inc. (NASDAQ: AMAT), Micron Technology Inc. (NASDAQ: MU), and Broadcom Inc. (NASDAQ: AVGO). Major banks also performed strongly, with Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) exceeding earnings expectations, and BlackRock Inc. (NYSE: BLK) hitting record assets under management. Economic data also supported sentiment, with US jobless claims remaining low and factory activity in New York rebounding.