index Update: The S&P/ASX 200 rebounded on Wednesday, rising 113.10 points or 1.30% to close at 8,793.60 after recently touching a new 20-day low. Over the past five sessions, the benchmark index has advanced 1.23%, while remaining broadly flat on a year-to-date basis. Despite the sharp gain in the index, more sectors finished lower than higher. Materials emerged as the top-performing sector, climbing 2.48% on the day and 0.98% over the past five days. Australian equities were supported by easing geopolitical concerns around the Iran conflict and gains across the big four banks.

Macro Update: According to the Australian Bureau of Statistics (ABS), Selected Living Cost Indexes (LCIs) rose between 1.1% and 2.5% in the March 2026 quarter, with housing, health and transport being the main contributors. Over the 12 months to March 2026, LCIs increased between 2.6% and 5.2%. ABS data also showed household spending rose 1.6% month-on-month in March 2026 on a seasonally adjusted basis, while Volume spending increased 0.7% during the March 2026 quarter. Separately, the Reserve Bank of Australia (RBA) raised the cash rate target by 25 basis points to 4.35% on 5 May 2026.

Top Market Movers: Among the top gainers, Infratil Limited (ASX:IFT) climbed 14.95% to AUD12.07, IGO Limited (ASX:IGO) advanced 6.59% to AUD8.08, and Liontown Limited (ASX:LTR) gained 6.27% to AUD2.54. On the losing side, Magellan Financial Group Limited (ASX:MFG) fell 8.93% to AUD8.77, JB Hi-Fi Limited (ASX:JBH) declined 6.28% to AUD72.98, and Life360 Inc. (ASX:360) dropped 5.88% to AUD19.84.

Commodity Update: Gold prices advanced in Asian trading on Wednesday as a weaker U.S. dollar and softer Crude Oil prices supported safe-haven Demand. Gold climbed 1.94% to USD 4,657.00 per ounce, while silver surged 3.27% to USD 75.98 per ounce. Copper also gained 1.45% to USD 13,285.90 per ton, reflecting improved risk appetite in industrial metals. Meanwhile, Brent Crude declined 1.38% to USD 108.35 per barrel after optimism grew that Middle East oil supplies could stabilize amid potential progress toward a U.S.-brokered Iran peace agreement.

Our Stance: The S&P/ASX 200 staged a broad rebound on Wednesday as easing geopolitical tensions and gains in the major banks lifted investor sentiment after recent weakness. However, the fact that more sectors closed lower than higher suggests the rally was concentrated rather than fully market-wide. Materials stocks benefited from firmer gold, silver and copper prices, while softer oil prices reduced concerns around inflationary energy shocks. At the same time, ABS data showing higher living costs and resilient household spending, combined with the RBA’s decision to lift the cash rate to 4.35%, indicates financial conditions remain tight. The market’s near-term direction may continue to depend on whether easing geopolitical risks can offset pressure from elevated interest rates and persistent cost-of-living concerns.

The S&P/ASX 200 advanced by 113.10 points in the latest session, forming a bullish candlestick that reflects improving sentiment and a gradual build-up in buying interest. From a technical standpoint, the index continues to trade above its 21-period SMA, which is acting as a key dynamic support and reinforcing the underlying positive bias. While the index is attempting to stabilise at current levels, immediate support is placed near 8,700.40. Sustaining above this level could help limit downside pressure and maintain the short-term upward structure. However, a decisive break below this support may weaken the technical setup, potentially leading to an extended corrective phase and a pickup in near-term Volatility.