Index Update: The S&P/ASX 200 closed higher on Friday, gaining 11.40 points, or 0.13%, to 8,860.10, supported by a rally on Wall Street. For context, on 22 January 2026, S&P 500 closed 0.5% higher at 6,913 points, while Nasdaq jumped 0.9% to 23,436 points.

Despite the modest ASX200 gain, more sectors ended lower than higher, with Information Technology leading the advance, up 3.83% and recovering from a recent five-day decline of 0.65%. Materials followed as the second-best performing sector, rising 1.44%. Over the past five sessions, the benchmark has slipped 0.49% but remains up 5.75% over the past 52 weeks.

Macro Update: The Bank of Japan kept its benchmark interest rates unchanged, maintaining its ultra-loose monetary policy. Meanwhile, precious metals surged, with both gold and silver reaching new highs as the U.S. dollar came under renewed pressure. The U.S. dollar weakened after President Donald Trump abandoned tariff threats against eight European nations and ruled out forcibly seizing Greenland. Trump noted that details of a potential U.S. agreement regarding Greenland are still under discussion.

In the technology sector, global demand for consumer electronics, including smartphones, personal computers, and gaming consoles, is expected to contract this year. Companies such as Britain’s Raspberry Pi and HP Inc have announced price increases to offset rising costs of memory chips.

Top Market Movers: On the ASX on Friday, Life360 Inc. (ASX:360) led gains, rising AUD 7.26 or 27.37% to AUD 33.79, followed by Regis Resources (ASX:RRL) up AUD 0.77 (10.16%) to AUD 8.35, and Greatland Resources (ASX:GGP) climbing AUD 0.99 (7.64%) to AUD 13.94. On the downside, Droneshield (ASX:DRO) fell AUD 0.26 (-5.50%) to AUD 4.47, The A2 Milk Company (ASX:A2M) dropped AUD 0.35 (-4.10%) to AUD 8.18, and Eagers Automotive (ASX:APE) declined AUD 1.13 (-3.88%) to AUD 27.97.

Commodity Update: The U.S. dollar was on track for its biggest weekly fall in a year after comments and reversals by Donald Trump unsettled investors. Gold rose 1.14% to USD 4,963.60, silver climbed 2.81% to USD 99.05, and copper gained 1.19% to USD 12,929.00. Brent crude slipped 1.80% to USD 64.06 as geopolitical concerns eased.

Our Stance: The ASX 200’s modest gain suggests cautious optimism, with technology showing signs of resilience and materials benefiting from steady demand. The market appears to be digesting global macro signals, including central bank policies and currency pressures, which are driving flows into safe-haven assets like gold and silver. U.S. policy reversals have eased some geopolitical concerns, yet uncertainty persists, especially in consumer electronics, where cost pressures may weigh on margins. Overall, the market seems balanced between growth opportunities and defensive positioning, with selective sectors likely to outperform while others may face headwinds from inflationary and global trade dynamics.

In the latest session, the S&P/ASX 200 Index rose 14.90 points to close at 8,863.60, supported by a bullish candlestick formation and strong trading volumes, reflecting sustained investor confidence. On the daily chart, the index continues to trade above its 21-period Simple Moving Average (SMA), which is providing dynamic support and reinforcing the short-term bullish bias. Immediate support is located near the 8,800 level, and holding above this zone will be crucial for maintaining the constructive price structure. On a broader timeframe, the index remains above its 50-period SMA on the weekly chart, highlighting a positive medium- to long-term technical outlook.