Index Update: The S&P/ASX 200 edged higher on Wednesday, adding 12.10 points, or 0.14%, to close at 8,820.60, marking a new 20-day high. Broad gains across eight of the 11 sectors were led by the energy sector, which rose 2.32% after oil prices hit a two-month peak amid unrest in Iran. However, advances were tempered by declines in major banks. Over the past five trading days, the index has climbed 1.44% and remains 3.23% below its 52-week high. Energy has been the standout performer, posting a 4.47% gain over the same period.

Macro Update: Inflation in the United States remained steady last month, adding to the political pressure on President Donald Trump as cost-of-living concerns persist for American households. Official data released on Tuesday showed the consumer price index rose 2.7% in the year to December, unchanged from the previous month, ahead of the president’s scheduled address on the economy. On a monthly basis, CPI increased by 0.3%. Meanwhile, the core inflation measure, which excludes food and energy prices, edged up 0.2%, a move that Samuel Tombs, chief US economist, attributed to the unwinding of distortions linked to the longest US government shutdown on record rather than a pickup in underlying price momentum.

Top Market Movers: On the ASX, Karoon Energy Ltd (ASX:KAR) led the gainers, rising 7.40% to AUD 1.67, followed by IperionX Ltd (ASX:IPX), up 7.19% to AUD 7.16, and Neuren Pharmaceuticals Ltd (ASX:NEU), which added 6.06% to close at AUD 20.47. On the downside, Block Inc. (ASX:XYZ) fell 3.44% to AUD 100.70, while Nickel Industries Ltd (ASX:NIC) and Cleanaway Waste Management Ltd (ASX:CWY) declined 2.66% and 2.32%, respectively.

Commodity Update: The U.S. dollar advanced to near a one-month high in early Asian trade after U.S. CPI data broadly met expectations, reinforcing views that the Federal Reserve will keep rates unchanged this month despite political pressure. Gold climbed 0.63% to USD 4,628.20, silver jumped 3.84% to USD 89.68, and copper rose 1.56% to USD 13,388.20. Brent crude edged down 0.14% to USD 65.38, easing after four sessions of gains as Venezuela resumed exports, while concerns over potential Iranian supply disruptions amid civil unrest continued to support prices.

Our Stance: Australian equities showed modest upward momentum, with energy stocks driving gains as oil prices remained sensitive to geopolitical risks, while weakness in major banks capped broader advances. The ASX 200’s move to a 20-day high reflects short-term resilience, though its distance from the 52-week peak suggests caution persists. Globally, steady US inflation data reinforced expectations of unchanged Federal Reserve policy, supporting the US dollar and shaping commodity moves. Strength in precious metals and copper points to ongoing demand for defensive and industrial assets, while mixed equity performances highlight a market balancing macro stability against sector-specific pressures.

In the latest session, the S&P/ASX 200 Index gained 12.10 points to close at 8,820.60, forming a modest bullish candlestick supported by strong trading volumes, indicating sustained investor confidence. On the daily chart, the index continues to trade above its 21-period Simple Moving Average (SMA), which is acting as a key dynamic support and preserving the short-term uptrend. The support zone near 8,760.50 remains critical; holding above this level could encourage consolidation followed by further upside. On the weekly timeframe, prices remain comfortably above the 50-period SMA, reinforcing a constructive medium- to long-term technical outlook.