Index Update: The S&P/ASX 200 closed higher for a third straight session on Thursday, adding 10.80 points or 0.13% to finish at 8,617.30 amid a rally in rate-sensitive technology stocks driven by optimism that the U.S. Fed will cut interest rates next month. Over the past five days, the benchmark index has risen 0.76% and is up 5.62% year to date, with nine of the 11 sectors advancing alongside the broader gauge. Information Technology was the standout performer, climbing 2.04% on the day and 3.92% over the past week.

Macro Update:  Gold climbed to a one-week high yesterday, as expectations of a potential U.S. Federal Reserve rate cut boosted sentiment.

Meanwhile, in Australia, private new capital expenditure rose 6.4% in the September quarter and is now 6.9% higher than a year ago, according to the ABS. The strongest lift in investment since March 2021 was driven by a surge in data-centre spending and air transport. Non-mining investment increased 8.6%, while mining rose 0.9%, with information media and telecommunications leading all industries with a 40.7% jump.

Top Market Movers: HMC Capital Limited (ASX:HMC) led the gainers, closing at AUD 3.55 after a 10.25% lift, followed by GQG Partners Inc. (ASX:GQG) at AUD 1.815, up 8.68%, and Digico Infrastructure REIT (ASX:DGT) at AUD 2.67, rising 8.10%. On the downside, DroneShield Limited (ASX:DRO) closed at AUD 2.00, down 7.84%, Harvey Norman (ASX:HVN) at AUD 6.97, down 4.39%, and Bapcor (ASX:BAP) at AUD 2.24, easing 3.86%.

Commodity Update: The dollar weakened on Thursday in thin holiday trade as markets looked ahead to 2025, with multiple U.S. rate cuts already priced in. Gold slipped 0.56% to USD 4,178.70, silver eased 0.29% to USD 52.76, and copper dipped 0.17% to USD 10,946. Brent crude fell 0.30% to USD 62.92 on optimism around a possible Ukraine-Russia ceasefire that could eventually ease sanctions on Russian supply.

Our Stance: The S&P/ASX 200 extended gains as U.S rate cut expectations and strong domestic investment data supported sentiment across key sectors. Market optimism was reinforced by solid gains on the Wall Street overnight, while Australia’s 6.4% quarterly rise in capex highlighted business investment led by data-centre spending. Tech stocks outperformed, and top movers showed strong divergence. Despite softer commodity prices, improving macro signals and broad sector participation suggest a cautiously constructive outlook as investors position for early-2026 policy shifts.

In its latest session, the S&P/ASX 200 Index rose 10.80 points to finish at 8,617.30, supported by a small bullish candlestick and strong trading volumes—both indicative of sustained investor confidence. On the daily chart, the index continues to trade below its 21-period SMA, which remains a key dynamic resistance level. A crucial support zone sits near 8,560, and holding above this area is vital for preserving the current bullish structure. Maintaining this support would enable the index to consolidate its recent gains while reinforcing confidence in the broader upward trend. From a weekly perspective, the index trades comfortably above its 50-period SMA, underscoring a constructive long-term outlook. Overall, the technical setup suggests the potential for continued upside momentum, provided near-term support levels remain intact.

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!