Index Update: The Australian sharemarket slipped to its lowest level in nearly six months on Wednesday, with the S&P/ASX 200 falling 21.20 points or 0.25% to 8,447.90, marking a new 100-day low. The index has now lost 4.00% over the past five sessions, despite remaining up 3.54% year-to-date. Trading was mixed across sectors, with seven of the eleven sectors finishing lower as investors trimmed positions ahead of Nvidia’s earnings. Energy led the gains, rising +0.86%, while Materials and A-REITs added +0.67% each. Losses were driven by the Financials (-1.19%), Utilities (-0.52%), Information Technology (-0.50%), Industrials (-0.37%), and Consumer Staples (-0.26%) sectors. Smaller declines were observed in Telecommunications Services (-0.16%) and Health Care (-0.13%), while Consumer Discretionary edged up by 0.05%.

Macro Update: Australia’s Wage Price Index (WPI) rose 0.8 per cent in the September quarter of 2025, according to new data from the Australian Bureau of Statistics. Annual wage growth reached 3.4 per cent in the year to September, steady compared with the June quarter but slightly below the pace recorded a year earlier. The quarterly rise matched growth seen in both the June quarter of 2025 and the September quarter of 2024. Total wages and salaries paid by employers climbed to $108.8 billion in September 2025, up 5.3 per cent from a year earlier, with a $5.3 billion lift over the three months since June—reflecting the typical seasonal boost from bonus payments. Annual growth in total wages and salaries eased to 5.3 per cent, down from 6.1 per cent in the previous year.

Top Market Movers: GQG Partners (ASX:GQG) topped the gainers, closing at AUD 1.625 after rising AUD 0.135 or 9.06%. Lynas Rare Earths (ASX:LYC) ended at AUD 15.440, up AUD 0.820 or 5.61%, while Westgold Resources (ASX:WGX) closed at AUD 5.660 with a AUD 0.250 gain, up 4.62%. Among losers, DroneShield (ASX:DRO) slid 19.59% to AUD 1.970, Catapult Sports (ASX:CAT) fell 7.47% to AUD 4.460, and Megaport (ASX:MP1) dropped 5.59% to AUD 12.850.

Commodity Update: The yen steadied and the U.S. dollar held firm in early Asian trade on Wednesday as investors shifted to safe havens after a global stock selloff. Gold rose 0.26% to USD 4,077.20 per ounce, while silver gained 0.81% to USD 50.96 and copper added 0.57% to USD 10,758.50. Brent crude slipped 0.40% to USD 64.61 amid rising U.S. inventories and anticipation over upcoming U.S. sanctions on Russian oil firms.

Our Stance: The ASX slipping 0.25% to 8,447.90 and hitting a 100-day low highlights how cautious investors have become, while a 4% fall over five days reflecting global tech uncertainty rather than local weakness. Domestic data remains steady, with wages up 0.8% in the September quarter and annual growth holding at 3.4%, while total wages reached AUD 108.8 billion—a sign that household earnings are still growing at a controlled pace. Market moves were mixed, with strong gains in GQG, Lynas and Westgold contrasting sharp drops in DroneShield and Catapult. Safe-haven buying lifted gold and supported the U.S. dollar, signalling broader risk aversion.

In its latest session, the S&P/ASX 200 Index declined 21.20 points, forming a large bearish candlestick on rising volume a combination that signals heightened investor caution and reinforces the prevailing short-term bearish sentiment. Despite the pullback, the index continues to trade below its 50-period Simple Moving Average (SMA), which remains an important zone of immediate resistance. On the daily chart, key support is positioned near 8,400. Holding above this level will be essential for stabilizing price action and helping restore market confidence in the near term. From a broader weekly perspective, however, the index still trades above its 50-period SMA, a constructive long-term signal that suggests the potential for sustained upward momentum once current selling pressure begins to ease.