index Update: The S&P/ASX 200 closed higher on Friday, rising 35.30 points or 0.41% to finish at 8,657.00, marking the market’s second weekly gain in six weeks. Investor sentiment improved amid optimism surrounding a potential US-Iran peace deal and growing expectations that rising Unemployment may reduce pressure on the Reserve Bank of Australia to raise interest rates further. Seven of the eleven sectors ended in positive territory, with materials leading gains, up 1.27% after recent weakness, while energy added 1.01%. Telecommunications services was the worst-performing sector, declining 1.86%.

Macro Update: Global economic growth showed mixed momentum in May, with Business activity remaining steady in the United States while slowing across Europe and Asia as rising energy costs weighed on Demand. The conflict in the Middle East has disrupted shipping through the Strait of Hormuz, a critical route for global oil and gas supplies, pushing energy prices higher worldwide. A new UNCTAD report said the global economy stayed resilient early in 2026, supported by trade, industrial output in developing economies and artificial intelligence-linked Investment. However, UNCTAD warned geopolitical tensions are increasingly destabilising markets, with global growth forecast to slow to 2.6% in 2026 and merchandise trade growth expected to weaken sharply.

Top Market Movers: Friday’s top gainers included 4D Medical Limited (ASX:4DX) at AUD 3.620AUD 0.340 (10.365%), Guzman y Gomez Limited (ASX:GYG) at AUD 19.810, up AUD 1.730 (9.568%), and Silex Systems Limited (ASX:SLX) at AUD 5.960, up AUD 0.340 (6.049%). Top decliners included SEEK Limited (ASX:SEK) at AUD 12.710, down AUD 0.790 (-5.852%), Telix Pharmaceuticals Limited (ASX:TLX) at AUD 13.320, down AUD 0.820 (-5.800%), and Lendlease Group (ASX:LLC) at AUD 2.820, down AUD 0.170 (-5.686%) during session period reported across ASX markets for the trading day overall session.

Commodity Update: The U.S. dollar remained near six-week highs, while oil prices stayed volatile as investors monitored ongoing U.S.-Iran peace talks. Gold declined 0.47% to USD 4,523.20, silver slipped 0.54% to USD 76.61, while copper gained 0.52% to USD 13,597.50. Brent Crude rose 2.30% to USD 104.96 amid concerns over unresolved disagreements related to Iran’s uranium stockpile and potential controls on the Strait of Hormuz, although markets still remained on track for a weekly decline.

Our Stance: Market sentiment improved as easing concerns around interest rates and expectations of softer monetary tightening supported equities, particularly resource and energy stocks. However, ongoing geopolitical tensions in the Middle East and shipping disruptions through the Strait of Hormuz continue driving commodity price Volatility and broader market uncertainty. Rising oil prices may sustain inflationary pressures globally despite slowing economic growth expectations. The ASX 200’s recent gains indicate improving investor risk appetite, although sector performance remains uneven amid mixed macroeconomic signals. Markets are likely to remain sensitive to Central Bank commentary, global trade trends, commodity price movements, and further developments surrounding geopolitical negotiations and energy Supply risks.

The S&P/ASX 200 gained 35.30 points in the latest Trading session, forming a bullish candlestick pattern that reflects renewed buying interest and improving short-term market sentiment. Despite the rebound, the index continues to trade below its 50-day Simple Moving Average (SMA), which remains an important dynamic resistance level and may continue to cap near-term upside momentum. From a technical standpoint, immediate support is positioned near the 8,540.50 level. Maintaining price action above this zone would help preserve the broader short-term upward structure and support further stabilization in sentiment. However, a decisive break below the 8,540.50 mark could weaken the current technical setup, increasing the risk of a deeper corrective phase, accompanied by heightened volatility and a more cautious near-term outlook.