Index Update:  The S&P/ASX 200 edged up 0.70 points to close at 8,783.90 on Tuesday. Seven of the 11 sectors finished higher, led by utilities, which gained 1.80% for the session and 4.76% over five days. Financials rose 1.39%, consumer staples added 1.31%, energy advanced 1.22% and consumer discretionary gained 0.91%. Information technology fell 4.37%, while materials declined 2.03%, limiting the broader market’s advance. The benchmark gained 0.55% over five days but remained virtually unchanged year to date.

Macro Update: The Reserve Bank of Australia’s September meeting minutes show why the board unanimously raised the cash rate by 25 basis points to 4.60%. Stronger inflation, higher oil prices, AI Investment and domestic capacity constraints intensified concerns that waiting could prove costly. Members also questioned whether the previous rate sufficiently restrained Demand and flagged risks from rising Business Inflation expectations. The board left further increases open if required to meet inflation and employment objectives. Attention now turns to September-quarter inflation data on 28 October for further evidence of underlying price pressures.

Top Market Movers: Among the gainers, AGL Energy Limited (ASX:AGL) rose AUD 0.350, or 4.093%, to AUD 8.900; Bank of Queensland Limited (ASX:BOQ) gained AUD 0.190, or 2.923%, to AUD 6.690; and Origin Energy Limited (ASX:ORG) increased AUD 0.310, or 2.758%, to AUD 11.550. Among the top three losers, Vulcan Energy Resources Limited (ASX:VUL) fell AUD 0.170, or 12.409%, to AUD 1.200; Elsight Limited (ASX:ELS) declined AUD 0.470, or 11.809%, to AUD 3.510; and Megaport Limited (ASX:MP1) dropped AUD 1.950, or 9.909%, to AUD 17.730.

Commodity Update:  The US dollar held steady at the start of Asian trading on Tuesday as geopolitical risks increased following renewed attacks on energy infrastructure in the Middle East and Ukraine. Gold gained 0.23% to USD 4,200.70, while silver declined 0.12% to USD 60.43 and copper fell 0.35% to USD 14,581.00. Brent Crude oil dropped 1.45% to USD 105.11 after rising in the previous session, as markets assessed Supply risks from attacks on Saudi Arabia alongside the prospect of additional Russian diesel supplies.

Our Stance: The S&P/ASX 200 closed almost unchanged at 8,783.90, reflecting a mixed session despite gains across seven sectors. Utilities and financials advanced, while technology and materials losses capped momentum. AGL Energy, Bank of Queensland and Origin Energy led gainers, while Vulcan Energy Resources, Elsight and Megaport declined. The RBA’s willingness to raise rates further keeps inflation risks in focus, supporting a cautious outlook. Gold edged higher as Brent crude retreated, with geopolitical developments complicating the Commodity picture. Overall, broader sector gains offer some support, but the flat close suggests limited conviction ahead of September-quarter inflation data due out on 28 October.

From a technical perspective, the S&P/ASX 200 index advanced in the latest trading session, maintaining a constructive near-term outlook despite the recent pullback. The index continues to hold above key support at 8,730.50, which remains crucial for preserving the broader bullish structure. Sustained trading above this level could help stabilise market sentiment and support a recovery towards recent highs. On the upside, immediate resistance is positioned near 8,820, and a decisive breakout above this level could strengthen buying momentum and open the way for further gains towards the next target of 8,880. However, a sustained break below 8,730.50 could weaken the technical outlook and increase downside risks.

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