AU
CA
NZ
UK
US
IND
Kalkine has a fully transformed New Avatar.
Image Source : Krish Capital Pty Ltd
Index Update: The Australian equities rebounded strongly on Wednesday with the benchmark S&P/ASX 200 gaining around 0.7%, to 8,737.20 points, just 0.45% shy of its 52-week high. Over the past five trading days, the index surged 2.05% in total ascent. Sectoral strength was almost universal, with ten of 11 sectors advancing. Materials led the charge, jumping approximately 1.2% on the day and posting a five-day gain of 6.3%, firmly underpinning the market’s recovery.
Macro Update: U.S. President Donald Trump has finalised a substantial trade agreement with Japan that reduces existing tariffs on auto imports and averts the imposition of new duties on other Japanese goods. In return, Japan has committed to a USD 550 billion package of investment and loans directed toward the U.S. economy. The deal, considered the most consequential among several negotiated since Trump introduced global tariffs in April, will see tariffs on Japanese autos, representing over a quarter of Japan's U.S. exports, reduced from 25% to 15%. Additional duties scheduled to take effect on 01 August will also be trimmed by a similar margin. As part of the arrangement, Japan will boost imports of American agricultural products, including rice.
Top Market Movers: Top gainers on the ASX included Whitehaven Coal (ASX: WHC), which rose AUD 0.44 or 6.53% to AUD 7.18, followed by Elders (ASX: ELD), up 6.19%, and James Hardie Industries (ASX: JHX), gaining 5.13%. On the downside, Telix Pharmaceuticals (ASX: TLX) slumped 15.13% to AUD 21.32, leading losses, while Paladin Energy (ASX: PDN) and Clarity Pharmaceuticals (ASX: CU6) fell 11.26% and 6.68%, respectively.
Commodity Update: The dollar remained weak on Wednesday after President Trump announced a trade deal with Japan, reducing a planned tariff from 25% to 15% and securing a USD550 billion Japanese investment in the U.S. Gold slipped 0.24% to USD3,335.60. In comparison, silver rose 0.20% to USD39.63. Copper edged down 0.13% to USD9,902.60. Brent crude gained 0.31% to USD68.80, limited by fading optimism over the upcoming EU-China summit.
Our Stance: The ASX’s broad-based rebound, with the S&P/ASX 200 nearing its 52-week high, reflects improving sentiment after recent losses. Globally, markets were buoyed by President Trump’s landmark tariff deal with Japan, easing trade tensions and lifting auto-related equities. While commodities showed mixed signals, the rally can be viewed as sustainable in the near term, supported by macro stability, sector rotation, and renewed risk appetite amid global policy easing and investment flows into Australia.
In its latest trading session, the S&P/ASX 200 Index rose by 60.00 points to close at 8,737.20, supported by a bullish candlestick pattern and strong trading volumes signals that reflect continued investor confidence and enthusiasm. Technically, the index remains firmly above its 21-period Simple Moving Average (SMA), reinforcing a positive near-term outlook. A key level to watch is the resistance at 8,770.50. A decisive breakout above this threshold could mark a significant bullish development, potentially reshaping market sentiment and paving the way for further gains. From a broader perspective, the index’s position above the 50-period SMA on the weekly chart further solidifies its long-term bullish foundation. However, sustaining the current upward momentum will depend on the index’s ability to break and hold above the 8,770.50 resistance level.
This article has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine. Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate to your objectives, financial situation and needs before acting upon it. There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product. Please note past performance is neither an indicator nor a guarantee of future performance. You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice/information in this article or on the Kalkine website. Not all investments are appropriate for all people. The information in this article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its articles, newsletters and websites. All information represents our views at the date of publication and may change without notice. Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this article, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law. Please also read our Terms & Conditions and Financial Services Guide for further information. On the date of publishing this article (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures. Some of the images/music that may be used in the article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the article unless stated otherwise. The images/music that may be used in the article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary. Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.
Please wait processing your request...