Index Update: The Australian sharemarket finished higher on Wednesday, with the S&P/ASX 200 Index rising 29.70 points, or 0.34%, to 8,823.00, closing above its 20-day moving average. The benchmark remained broadly unchanged over the past five trading sessions and finished 4.13% below its 52-week high.

Mining stocks led the market higher as investors returned to the sector following a rebound in gold prices and copper climbing to its highest level in more than a month. Materials led gains, climbing 2.30% on the day as the sector recovered from recent weakness, although it remained 1.29% lower over the past five trading sessions. Energy also advanced 1.67%, while Financials edged up 0.19%. On the downside, Health Care declined 1.93%, followed by A-REITs (-1.44%), Consumer Discretionary (-1.44%), Information Technology (-1.07%), Telecommunication Services (-0.93%), Utilities (-0.75%) and Industrials (-0.08%).

Macro Update: The United States launched a tenth consecutive night of strikes on Iran, targeting military command centres, missile and drone launch sites, maritime assets and air defence systems, according to US Central Command. The operation followed President Donald Trump's pledge to respond after the deaths of three US soldiers. Iran said it retaliated by striking two oil tankers in the Strait of Hormuz and targeting US military assets in Bahrain, Kuwait and Jordan. Amid the escalating conflict, maritime traffic through the strategic waterway continued, although reports indicated reduced vessel movements.

Top Market Movers: Among the top gainers, IperionX Limited (ASX: IPX) climbed 8.67% to AUD 3.510, followed by Kingsgate Consolidated Limited (ASX: KCN), which advanced 7.56% to AUD 4.270. Ora Banda Mining Ltd (ASX: OBM) also posted a solid gain, rising 7.28% to AUD 1.105. On the downside, Cochlear Limited (ASX: COH) fell 4.92% to AUD 112.190, while Pro Medicus Limited (ASX: PME) declined 3.66% to AUD 173.450. Lynas Rare Earths Limited (ASX: LYC) slipped 3.64% to AUD 15.380.

Commodity Update: The U.S. dollar strengthened on Wednesday, reaching its highest level in more than a week as elevated U.S. Treasury yields and increased safe-haven demand, driven by ongoing Middle East tensions, supported the currency. The Japanese yen weakened further, touching its lowest level against the U.S. dollar since 1986. Gold rose 1.59% to USD 4,141.30 per ounce, silver gained 1.83% to USD 60.19 per ounce, while copper declined 0.66% to USD 13,837.00 per tonne. Brent crude oil advanced 0.60% to USD 91.55 per barrel amid concerns over escalating U.S.-Iran conflict and risks to regional energy supplies.

Our Stance: The Australian sharemarket extended its gains on Wednesday, with the S&P/ASX 200 rising 0.34% as renewed buying in mining stocks lifted the benchmark above its 20-day moving average. Stronger gold prices and a rebound in copper supported Materials, while Energy also advanced despite weakness across most other sectors. Meanwhile, escalating US-Iran tensions boosted safe-haven demand, lifting gold, the US dollar and oil prices as concerns over supply disruptions in the Strait of Hormuz persisted. Going forward, investors are likely to monitor geopolitical developments, commodity price movements and their potential impact on market sentiment and sector performance.

The S&P/ASX 200 advanced 29.70 points in the latest trading session, forming a modest bullish candlestick that reflected cautious buying interest. Despite the limited gain, the broader technical outlook remains constructive, with the index continuing to trade comfortably above its 21-day Simple Moving Average (SMA), which is acting as a key dynamic support level and reinforcing the prevailing medium-term uptrend. Immediate support is seen around 8,750.60, and maintaining this level would help preserve the bullish structure and support the potential for further upside. A sustained rebound from this support zone could lead to a retest of recent highs and extend the ongoing rally. However, a decisive break below 8,750.60 could weaken near-term sentiment, trigger increased selling pressure, and raise the risk of a deeper corrective pullback.