Index Update: The Australian sharemarket ended Thursday marginally lower, with the S&P/ASX 200 slipping 6.40 points to 9,146.80 despite gains across seven of 11 sectors. Financials led the advance, rising 1.10%, followed by A-REITs (+0.62%) and Healthcare (+0.61%). Materials (-2.08%) and Utilities (-1.03%) weighed on the benchmark. The index gained 0.90% over five sessions and remained 1.61% below its 52-week high. Meanwhile, the Australian dollar touched a 10-month low as oil prices extended losses.

Macro Update: The European Union has warned that Australia's AUD 10 bn Free Trade Agreement could collapse if Parliament rejects it. Senior European lawmaker Seán Kelly indicated Brussels would not reopen negotiations to accommodate Australian political demands. With the Coalition and Greens Withholding support, the agreement faces uncertainty in the Senate. The deal, negotiated over several years, aims to expand trade opportunities between Australia and Europe, but its implementation depends on parliamentary approval.

Top Market Movers: Domino’s Pizza Enterprises Limited (ASX:DMP) led the gainers, surging 12.933% or AUD 2.870 to AUD 25.060. Xero Limited (ASX:XRO) advanced 6.082% or AUD 4.310 to AUD 75.170, while AUB Group Limited (ASX:AUB) climbed 5.049% or AUD 1.540 to AUD 32.040. Among the losers, Minerals 260 Limited (ASX:MI6) declined 8.523% to AUD 0.805, followed by Elevra Lithium Limited (ASX:ELV), which fell 8.354% to AUD 3.730. PLS Group Limited (ASX:PLS) slipped 8.065% to AUD 2.850.

Commodity Update: Asian currencies remained under pressure on Thursday as stronger-than-expected U.S. Inflation data reinforced expectations of another Federal Reserve rate hike next month. Gold declined 0.52% to USD 3,979.57, silver fell 1.12% to USD 51.425, and copper decreased 0.62% to USD 13,723.60. Meanwhile, Brent Crude dropped 1.63% to USD 91.25, following reports of potential U.S.-Iran talks to ease geopolitical tensions.

Our Stance: The Australian sharemarket displayed resilience on Thursday, with the ASX 200 slipping marginally despite weakness in Materials and Utilities. Gains across seven sectors, particularly Financials, Healthcare and A-REITs, provided support, while strong advances in Domino’s Pizza and Xero highlighted selective buying interest. However, declining Commodity prices, a weaker Australian dollar and uncertainty surrounding the Australia-EU trade agreement could influence near-term sentiment. With the benchmark retaining its five-day gain and trading close to its 52-week high, the broader market outlook remains cautiously constructive. Continued sector rotation and external developments may determine whether the index sustains its recent momentum.

From a technical standpoint, the S&P/ASX 200 Index edged marginally lower during the latest trading session, signalling a pause in its recent momentum. The near-term market direction is likely to hinge on the index’s ability to defend the crucial support level at 9,110. On the upside, immediate resistance is placed near 9,180, where selling pressure may emerge and restrict further gains. A sustained inability to overcome this barrier could keep the index range-bound and extend the consolidation phase. Conversely, a decisive breakdown below 9,110 would undermine the prevailing technical structure, accelerate bearish momentum and expose the index to deeper downside levels. Overall, the outlook remains cautiously positive while the index holds above key support, although a breach could quickly tilt sentiment towards negative territory.