Index Update: The Australian sharemarket extended gains on Tuesday, with the S&P/ASX 200 rising 61.50 points, or 0.68%, to 9,164.60, crossing above its 20-day moving average. The benchmark has gained 1.04% over the past five sessions and remains 1.42% below its 52-week high. Market Breadth was positive, with nine of 11 sectors closing higher. Information Technology led with a 2.25% gain, followed by Consumer Staples at 2.11% and Health Care at 1.40%. Financials and Consumer Discretionary also advanced. Energy fell 0.78%, while A-REITs slipped 0.16%.

Macro Update: Iran said it was prepared to withstand expanded US sanctions after Washington unveiled what it called an “economic D-Day” aimed at cutting Tehran off from the global economy. Economy Minister Ali Madanizadeh said Iran had plans in place to manage the measures and expected key partners to continue trading. US Treasury Secretary Scott Bessent said countries, banks and businesses maintaining financial ties with Iran could face isolation. The latest measures target digital assets, technology, gold, aviation and shipping, alongside sanctions on nearly 60 entities, individuals and vessels.

Top Market Movers: Electro Optic Systems Holdings Limited (ASX:EOS) led the gainers, rising 23.023% to AUD 10.580, followed by ARB Corporation Limited (ASX:ARB), which advanced 13.869% to AUD 21.510. Ansell Limited (ASX:ANN) gained 8.159% to AUD 41.360. Among the decliners, Monadelphous Group Limited (ASX:MND) fell 11.956% to AUD 28.500, Liontown Limited (ASX:LTR) dropped 8.680% to AUD 1.210, while PLS Group Limited (ASX:PLS) declined 6.033% to AUD 5.140.

Commodity Update: The Canadian dollar weakened about 0.6% against the U.S. dollar as investors assessed escalating trade tensions after President Donald Trump threatened higher tariffs on Canadian automobiles, parts and steel. Gold declined 0.20% to USD 4,688.56, while silver fell 1.29% to USD 67.713 and copper declined 0.45% to USD 14,200.40. Brent Crude rose 0.51% to USD 91.00 amid market uncertainty over the impact of wider U.S. sanctions against Iran, with Tehran vowing retaliation.

Our Stance: The ASX 200’s second consecutive gain and broad participation across nine sectors suggest improving near-term market momentum, with technology and consumer-linked sectors providing support. However, heightened geopolitical and trade tensions, wider US sanctions on Iran and mixed Commodity moves could keep Volatility elevated. With the benchmark approaching its 52-week high, sentiment appears cautiously constructive, although global policy developments and corporate Earnings are likely to remain important drivers of direction. Selective opportunities may continue to emerge, but external risks require some caution around the durability of the current advance.

On the technical front, the S&P/ASX 200 index gained 61.50 points in the latest trading session, reflecting renewed buying interest. The index continues to hold above key support near 9,100, which remains crucial for maintaining the prevailing bullish bias. A sustained hold above this level could support a recovery towards recent highs, while a decisive break below 9,100 would weaken the technical setup and increase downside risk. On the upside, a decisive breakout above the recent swing high near 9,200 would strengthen bullish momentum and could pave the way for further gains towards the next target near 9,270. Therefore, sustained trading above 9,100 remains important for preserving the near-term bullish outlook