Index Update: Australian shares extended their rally on Wednesday, with the S&P/ASX 200 climbing 48.60 points, or 0.54%, to close at 8,966.30, marking its highest level in 20 trading days. The benchmark index has now advanced 3.62% over the past five sessions and sits 2.57% below its 52-week peak.

Market sentiment was supported by strength in heavyweight BHP, which touched a record high, while oil prices slipped to their lowest level in three months. Sector performance was broadly positive, with eight of the eleven sectors finishing in the green. Information Technology emerged as the strongest performer, rising 2.03% on the day and extending its five-day gain to 0.41%. Materials and Consumer Discretionary also posted solid advances of 1.15% and 1.16%, respectively, while Health Care added 0.90%. On the downside, Energy was the weakest sector, falling 2.26% amid lower oil prices. Utilities declined 1.68%, while Consumer Staples slipped 0.90%. Financials and A-REITs delivered modest gains of 0.54% and 0.47%, respectively.

Macro Update: International Monetary Fund (IMF) Managing Director Kristalina Georgieva said the global economy has so far avoided a broad slowdown despite disruptions caused by the Middle East conflict. Ahead of the G7 summit in France, Georgieva noted that commodity prices, inflation and financial conditions have been affected but not enough to derail global growth. She welcomed the US-Iran agreement to reopen the Strait of Hormuz but cautioned that renewed hostilities or prolonged energy supply disruptions remain key risks. The IMF is set to release updated global growth forecasts on July 8, with several regions facing uneven impacts from higher energy costs.

Top Market Movers: Among the top gainers, Web Travel Group (ASX:WEB) rose 11.07% to AUD 3.01, followed by SiteMinder (ASX:SDR), which gained 10.10% to AUD 4.25. Resolute Mining (ASX:RSG) advanced 8.60% to AUD 1.20. On the downside, Karoon Energy (ASX:KAR) led the losses, falling 13.37% to AUD 1.425. Yancoal Australia (ASX:YAL) declined 3.78% to AUD 5.85, while Woodside Energy Group (ASX:WDS) slipped 3.60% to AUD 28.96.

Commodity Update: The U.S. dollar remained steady on Wednesday after a four-session losing streak, supported by improving risk sentiment as expectations grew for a potential U.S.-Iran peace agreement. Currency markets also reacted to interest rate decisions from Japan and Australia, while investors awaited the Federal Reserve’s monetary policy decision under Chair Kevin Warsh. Gold slipped 0.03% to USD 4,352.70 per ounce, while silver rose 0.45% to USD 70.33 per ounce. Copper edged up 0.01% to USD 13,818.90 per tonne. Brent crude oil declined 0.60% to USD 79.43 per barrel amid easing geopolitical concerns.

Our Stance: Australian shares extended their recent advance on Wednesday, with the S&P/ASX 200 rising 0.54% to a 20-session high of 8,966.30, supported by gains in BHP and strength across technology, materials and consumer discretionary stocks. Easing oil prices weighed on the energy sector, while improving global risk sentiment and the IMF’s view that the world economy has avoided a broad slowdown helped underpin investor confidence. Commodity markets were mixed, with gold edging lower and copper holding steady. With the benchmark index now within striking distance of its 52-week high and geopolitical tensions easing, market sentiment appears constructive, although energy prices, central bank decisions and lingering geopolitical risks could still inject volatility.

The S&P/ASX 200 advanced 48.60 points in the latest trading session, forming a bullish candlestick pattern that signals improving market sentiment and renewed buying interest. From a technical standpoint, the index continues to trade comfortably above its 21-day Simple Moving Average (SMA), which remains an important dynamic support level and reinforces the prevailing upward trend. Immediate support is situated near the 8,900 level, and as long as the index remains above this zone, the broader bullish structure is expected to stay intact. The positive technical setup indicates that buyers continue to maintain control of the trend, while supportive economic conditions and sustained investor confidence could provide further momentum for gains in the near term.