Index Update: The Australian sharemarket edged higher on Wednesday, supported by softer-than-expected inflation data and rising metal prices. The S&P/ASX 200 gained 12.80 points, or 0.15%, to 8,695.60, moving above its 50-day moving average. Eight of 11 sectors rose, led by Information Technology (+1.53%), Materials (+1.32%), and Consumer Staples (+1.18%), while Energy (-2.34%) and Financials (-1.02%) lagged. The index remains 4.60% below its 52-week high.

Macro Update: Australia’s annual inflation eased in November 2025, with the Consumer Price Index (CPI) rising 3.4% over the year, down from 3.8% in October, according to the Australian Bureau of Statistics (ABS). Housing costs led the increase at 5.2%, followed by Food & non-alcoholic beverages (+3.3%) and Transport (+2.7%). Trimmed mean inflation slowed to 3.2%, while Goods inflation eased to 3.3%, mainly due to lower electricity price growth. Services inflation also moderated to 3.6%.

Top Market Movers: On Wednesday, the ASX saw notable movers as Lynas Rare Earths (ASX:LYC) surged 14.52% to AUD 15.06, followed by Silex Systems (ASX:SLX) up 8.92% at AUD 7.08 and IperionX (ASX:IPX) climbing 7.64% to AUD 6.62. On the downside, Bellevue Gold (ASX:BGL) fell 6.43% to AUD 1.68, Harvey Norman Holdings (ASX:HVN) slipped 4.93% to AUD 6.56, and Beach Energy (ASX:BPT) eased 4.83% to AUD 1.09, reflecting mixed sector sentiment.

Commodity Update: The U.S. dollar traded in a narrow range on Wednesday as investors awaited a batch of key U.S. economic data likely to shape the Federal Reserve’s rate outlook, overshadowing geopolitical concerns. Commodities softened, with gold slipping 0.24% to USD 4,486.10, silver down 0.56% to USD 80.54, and copper easing 0.36%. Brent crude declined 1% to USD 60.11 after comments on potential Venezuelan oil supply boosted supply expectations.

Our Stance: The Australian sharemarket edged higher on Wednesday, with the S&P/ASX 200 gaining 12.80 points to 8,695.60, buoyed by softer-than-expected inflation and rising metal prices. Inflation eased to 3.4% in November, driven by slower growth in housing, goods, and services, offering some relief for markets. Sector performance was mixed, with Technology and Materials leading gains, while Energy and Financials lagged. Notable movers included Lynas Rare Earths (ASX:LYC) up 14.5% and Bellevue Gold (ASX:BGL) down 6.4%. Commodities softened amid a cautious U.S. dollar. Overall, the market shows resilience, but market participants may remain selective, balancing inflation trends with sector-specific opportunities.

In its latest session, the S&P/ASX 200 Index edged higher by 12.80 points to close at 8,695.60, supported by a bullish candlestick pattern and strong trading volumes both signaling sustained investor confidence. On the daily chart, the index continues to trade above its 21-period Simple Moving Average (SMA), which is now acting as a dynamic support and reinforcing the prevailing short-term bullish bias. A key support zone is positioned near 8,610, and maintaining levels above this threshold will be crucial for preserving the constructive price structure. Holding this support may allow the index to consolidate recent gains while sustaining confidence in the broader upward trajectory. From a weekly perspective, the index remains above its 50-period SMA, underscoring a constructive longer-term outlook. Overall, this setup suggests scope for continued upside momentum, provided near-term support levels remain intact.