Index Update: The Australian sharemarket rose for a third consecutive session on Tuesday, following overnight gains on Wall Street. The S&P/ASX 200 added 49.30 points, or 0.57%, to close at 8,735.70, moving above its 20-day moving average. The index gained 0.30% over the past five days but remained virtually unchanged for the year to date.

Nine of the 11 sectors closed higher. A-REIT was the best performer, advancing 1.14% for the session and taking its five-day gain to 0.17%.

Materials rose 0.91%, followed by utilities at 0.90% and financials at 0.73%. Healthcare gained 0.63%, while consumer discretionary increased 0.33%. Information technology recorded the largest sector decline, falling 2.90%. Consumer staples also finished lower, slipping 0.13%.

Macro Update: The US Treasury Department has warned that foreign financial institutions dealing with Iran or its financial sector could face sanctions without advance notice. It urged institutions to immediately end transactions and relationships with sanctioned Iranian entities. Banks helping Iran access global financial services, including through overseas branches or subsidiaries, also risk sanctions. Restrictions could prevent institutions from opening or maintaining US correspondent or payable-through accounts. Civil and criminal penalties may apply if Iran-related transactions cause US institutions or other US persons to violate existing US sanctions rules.

Top Market Movers: Metcash Limited (ASX:MTS) led the gainers in the session, rising AUD 0.140 (4.878%) to AUD 3.010, followed by Arena REIT (ASX:ARF), up AUD 0.095 (4.785%) to AUD 2.080, and Alcoa Corporation (ASX:AAI), gaining AUD 2.490 (4.142%) to AUD 62.600. Among the top three losers, Weebit Nano Ltd (ASX:WBT) fell AUD 0.510 (12.978%) to AUD 3.420, Elsight Limited (ASX:ELS) declined AUD 0.610 (11.553%) to AUD 4.670, and PDI Gold Limited (ASX:PDI) dropped AUD 0.330 (6.667%) to AUD 4.620.

Commodity Update: The dollar remained elevated near a 17-month high on Tuesday, as higher Treasury yields offset support from fading expectations of another Federal Reserve rate hike. Gold gained 0.06% to USD 4,159.10, while silver declined 0.35% to USD 61.09 and copper increased 0.03% to USD 14,446.85. Brent Crude oil gained 0.30% to USD 100.60, remaining under pressure after Saudi Aramco cut November crude prices for Asia. Renewed military tensions involving Saudi Arabia and Yemen’s Iran-backed Houthis limited downside pressure on crude prices.

Our Stance: Australia’s sharemarket extended its rally to three sessions, with the ASX 200 rising 0.57% to 8,735.70, suggesting improving near-term momentum. Nine sectors advanced, led by A-REIT, although technology’s 2.90% decline highlighted uneven participation. Metcash (ASX:MTS), Arena REIT (ASX:ARF) and Alcoa (ASX:AAI) led gains, while Weebit Nano (ASX:WBT), Elsight (ASX:ELS) and PDI Gold (ASX:PDI) fell sharply. The US warning of sanctions against foreign institutions dealing with Iran adds uncertainty. Gold and copper edged higher, silver slipped, and Brent rose 0.30% as regional tensions tempered pricing pressure. With the dollar elevated and the index virtually unchanged year to date, the broader picture supports a cautiously constructive stance, tempered by sector divergence and geopolitical risks, despite the recent improvement in daily market performance.

On the technical front, the S&P/ASX 200 Index gained in the latest trading session, maintaining its overall positive momentum. Despite the recent pullback, the index continues to hold above key support near 8,670, which remains crucial for sustaining the prevailing bullish bias. A sustained hold above this level could support a recovery toward the recent highs, while a decisive break below 8,670 would weaken the technical structure and increase downside risk. On the upside, a decisive breakout above the recent swing high near 8,760 could further reinforce bullish momentum and potentially pave the way for additional gains toward the next target near 8,820.