Index Update: The S&P/ASX 200 gained 90.80 points, or 1.01%, to close at 9,038.60, marking a new 100-day high. The index has advanced 2.44% over the past five sessions and remains 1.79% below its 52-week peak. All 11 sectors finished higher, led by Health Care, which rose 4.24% and extended its five-day gain to 5.56%. The Australian sharemarket climbed to a five-month high on Wednesday as softer inflation data reduced expectations of a Reserve Bank of Australia cash rate increase next month.

Macro Update: Australia’s Consumer Price Index rose 3.8% in the year to June 2026, while quarterly inflation reached 0.6%, according to the ABS. Housing recorded the largest annual increase at 6.8%, driven by electricity costs, up 22.4%, and new dwelling prices, up 5.8%. Food and non-alcoholic beverages and recreation and culture each increased 3.3%. Underlying inflation remained steady at 3.6%, with the quarterly trimmed mean rising 0.8%. Transport inflation eased to 0.1% as automotive fuel prices fell 10.9% in June amid lower global oil prices and fuel excise relief.

Top Market Movers: Lovisa Holdings Limited (ASX:LOV) gained 7.880% to AUD 24.640, CSL Limited (ASX:CSL) rose 7.153% to AUD 128.070, and Domino’s Pizza Enterprises Limited (ASX:DMP) advanced 5.275% to AUD 17.960. Develop Global Limited (ASX:DVP) declined 17.563% to AUD 4.600, Megaport Limited (ASX:MP1) fell 8.404% to AUD 16.350, while Liontown Limited (ASX:LTR) dropped 7.917% to AUD 1.105.

Commodity Update: The U.S. dollar weakened on Wednesday, retreating from a more than one-month high as investors remained cautious ahead of the Federal Reserve's monetary policy decision later in the day. Gold declined 0.31% to USD 4,032.40 per ounce, while silver gained 0.91% to USD 58.05 per ounce. Copper slipped 0.28% to USD 13,651.35 per metric ton. Meanwhile, Brent crude oil surged 4.20% to USD 87.62 per barrel after Iran launched a second wave of ballistic missiles targeting U.S. forces, increasing concerns over potential disruptions to oil supplies from the Middle East.

Our Stance: The Australian sharemarket’s advance above 9,000 reflected broad-based buying after softer quarterly inflation reduced expectations of an imminent RBA rate increase. The S&P/ASX 200 gained 1.01%, with all 11 sectors closing higher and Health Care leading the rally. However, annual CPI remained elevated at 3.8%, while housing and electricity costs continued to exert pressure. Commodity movements were mixed, although Brent crude surged as renewed Middle East tensions raised supply concerns. The market’s breadth and five-day gain indicate improving sentiment, but persistent underlying inflation and geopolitical uncertainty may limit momentum and keep upcoming central bank decisions firmly in focus.

The S&P/ASX 200 Index advanced 90.80 points in the latest trading session, forming a bullish candlestick pattern that reflects renewed buying interest and improving investor sentiment. The broader technical outlook remains constructive, with the index continuing to trade comfortably above its 50-day Simple Moving Average (SMA), which is acting as a key dynamic support level and reinforcing the prevailing medium-term uptrend. Momentum indicators remain supportive, suggesting that buyers continue to emerge on market pullbacks and maintain control of the broader trend. From a technical perspective, immediate support is positioned around 8,960.70. As long as the index holds above this key level, the broader bullish structure is expected to remain intact, increasing the likelihood of a retest of recent highs and a continuation of the ongoing upward momentum. However, a decisive break below 8,960.70 could weaken the near-term technical outlook, potentially triggering renewed selling pressure and increasing the risk of a deeper corrective pullback.