Index Update: The S&P/ASX 200 ended Wednesday higher, rising 21.40 points, or 0.24%, to close at 8,808.40, snapping a four-session losing streak. Despite the gain, the benchmark index remains down 1.76% over the past five trading days and sits 4.29% below its 52-week high. Investors weighed a mixed inflation report that kept expectations open for further interest rate increases by the Reserve Bank of Australia. Market breadth was positive, with nine of the index’s 11 sectors finishing in the green. Information Technology led the advance, surging 5.21% and recovering from recent weakness, although the sector remains down 4.37% over the past five days.

Macro Update: Australia’s annual inflation rate eased to 4.0% in the 12 months to May 2026, down from 4.2% in April, according to the Australian Bureau of Statistics (ABS). Housing remained the largest contributor, rising 6.5%, driven by higher electricity, rent and new dwelling costs. Food and non-alcoholic beverages increased 3.3%, supported by higher prices for meals out and takeaway food, while transport costs also rose 3.3%, although growth moderated as fuel prices declined. Meanwhile, trimmed mean inflation, a key measure of underlying price pressures, increased to 3.6% from 3.4%. On a monthly basis, CPI fell 0.7% in original terms and 0.1% seasonally adjusted.

Top Market Movers: Among the top gainers on the ASX, WiseTech Global (ASX:WTC) surged 14.26% to AUD 32.86, adding AUD 4.10, while Elevra Lithium (ASX:ELV) climbed 8.58% to AUD 11.52, up AUD 0.91. Xero (ASX:XRO) advanced 8.17% to AUD 70.31, gaining AUD 5.31. On the downside, Predictive Discovery (ASX:PDI) fell 11.23% to AUD 0.83, shedding AUD 0.105. Beach Energy (ASX:BPT) declined 8.51% to AUD 0.86, down AUD 0.08, while Bellevue Gold (ASX:BGL) lost 6.03% to AUD 1.325, slipping AUD 0.085.

Commodity Update: The U.S. dollar strengthened on Wednesday, holding near its highest level in more than a year as investors continued to assess the Federal Reserve’s recent hawkish policy stance. Risk sentiment remained cautious amid a global technology sector sell-off, prompting a shift toward defensive assets and currencies. Gold declined 1.83 points to USD 4,072.50, while silver slipped 1.33 points to USD 61.23. Copper edged higher by 0.14 points to USD 13,404.30. Brent crude oil eased 0.40 points to USD 76.76 amid improving Middle East supply expectations.

Our Stance: The Australian share market rebounded on Wednesday, with the S&P/ASX 200 rising 0.24% to 8,808.40 and ending a four-day losing streak. The gains came despite a mixed inflation report showing headline CPI easing to 4.0% in May from 4.2% in April, while trimmed mean inflation accelerated to 3.6%, highlighting persistent underlying price pressures. Housing remained the largest contributor to inflation, while easing fuel costs helped moderate transport inflation. Information Technology led sector gains, supported by strong advances in WiseTech Global (ASX:WTC) and Xero (ASX:XRO). Meanwhile, a firmer U.S. dollar and softer precious metals prices reflected cautious global sentiment. While easing headline inflation provided some relief, elevated core inflation may keep the RBA’s policy outlook firmly in focus.

The S&P/ASX 200 advanced by 21.40 points in the latest trading session, forming a bullish candlestick pattern and signalling continued buying interest. The broader technical outlook remains constructive, with the index continuing to trade above its 21-day Simple Moving Average (SMA), which serves as a key dynamic support level and reinforces the prevailing uptrend. Immediate support is positioned around 8,720.50, and maintaining levels above this threshold would help preserve the current bullish market structure. A successful defence of support could encourage renewed buying interest and support further gains in the sessions ahead. Conversely, a decisive break below this support zone may weaken market sentiment, increase selling pressure, and heighten the risk of a deeper short-term correction. Overall, the medium-term outlook remains positive, provided the index continues to hold above key support levels and sustain its upward trajectory.