Image Source : Krish Capital Pty Ltd

Index Update: The S&P/ASX 200 edged higher as gains in the S&P/ASX 200 Energy, S&P/ASX 200 Industrials, and S&P/ASX 200 Health Care sectors led shares higher. The index rose by 6.90 points on Tuesday to close at 8,704.60, extending its five-day gain to 0.32%. It now sits just 0.82% below its 52-week high. Seven of the eleven sectors finished in positive territory, with the energy sector leading the gains, up 0.65% on the day and 1.14% over the past week.

Macro Update: U.S. President Donald Trump announced on Monday that countries without individual trade agreements with the United States could soon face tariffs ranging from 15% to 20% on their exports. This proposed rate significantly exceeds the 10% blanket tariff introduced in April. Speaking at a press conference in Turnberry, Scotland, following his meeting with UK Prime Minister Keir Starmer, Trump said his administration would notify around 200 nations of the impending “world tariff” baseline. Australian exporters could be affected, with the Albanese government yet to secure a bilateral trade deal to avoid the higher tariff threshold.

Top Market Movers: EVT Limited (ASX: EVT) led the gains on Tuesday, rising AUD 0.60 or 3.73% to close at AUD 16.70. Austal Limited (ASX: ASB) followed up 3.62% to AUD 6.30, while Worley Limited (ASX: WOR) added 3.17% to finish at AUD 13.68. On the downside, Viva Energy (ASX: VEA) slid 6.39% to AUD 2.05, with Paladin Energy (ASX: PDN) and Boss Energy (ASX: BOE) also declining over 5%.

Commodity Update: The euro continued to struggle after the U.S.-EU trade deal largely favoured the U.S., dampening optimism for Europe’s economy. Gold saw a slight rise of 0.023% to USD3,374.70, while silver jumped 0.27% to USD38.31. Copper dipped 0.04% to USD9,792.90. Brent crude gained 0.10% to USD70.09, driven by supply concerns after President Trump shortened Russia’s war deadline and positive U.S. trade developments eased EU tariff fears, raising hopes for higher energy demand.

Our Stance: The S&P/ASX 200 edged up 6.90 points on Tuesday to 8,704.60, reflecting relative stability as it hovers just 0.82% below its 52-week high. Gains in energy stocks helped support the index, but global headwinds are brewing. U.S. President Trump’s plan for a 15–20% baseline tariff on nations without trade deals could significantly impact Australian exporters, especially given the absence of a U.S.-Australia agreement. Investors should remain alert to rising global trade risks.

In its most recent trading session, the S&P/ASX 200 Index edged higher by 6.90 points, closing at 8,704.60. The gain was supported by the formation of a bullish candlestick pattern and elevated trading volumes, both of which reflect ongoing investor confidence and positive market sentiment. From a technical perspective, the index continues to trade well above its 21-period Simple Moving Average (SMA), reinforcing a constructive near-term outlook. Attention now turns to a key resistance level at 8,740.50. A decisive breakout above this threshold would signal a meaningful bullish development, potentially shifting market sentiment further in favor of buyers and paving the way for additional upside. Looking at the broader trend, the index also holds above its 50-period SMA on the weekly chart, reinforcing its long-term bullish structure. However, to maintain this momentum, the index must clear and sustain levels above 8,740.50, which remains a critical hurdle in the near term.