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Index Update: The S&P/ASX 200 surged 1.37% or 118.20 points on Friday to close at 8,757.20, marking a new 100-day high. The benchmark index rose 2.06% over the past five sessions and now sits just 0.22% below its 52-week peak. All eleven sectors closed in positive territory, led by health care with gains at +2.47%, followed by materials (+2.06%) and IT (+1.50%).

Macro Update: Growing instability in U.S. financial markets could have far-reaching global consequences, with economists warning that a potential dismissal of Fed Chair Jerome Powell by Donald Trump may trigger a spike in long-term U.S. Treasury yields and a decline in the US dollar. Such moves risk destabilising global financial systems, as many central banks hold large reserves in dollar-denominated assets. With the U.S. dollar used in nearly 90% of cross-border payments, any disruption could have widespread ripple effects..

Top Market Movers: Mesoblast Limited (ASX: MSB) topped the ASX gainers, surging 34.6% to close at AUD 2.41. Clarity Pharmaceuticals (ASX: CU6) advanced 11.8% to AUD 3.89, while Liontown Resources (ASX: LTR) rose 10.1% to AUD 0.93. On the downside, Yancoal Australia (ASX: YAL) led losses, slipping 5.8% to AUD 5.84. Medibank Private (ASX: MPL) declined 2.5% to AUD 5.02, and Endeavour Group (ASX: EDV) eased 2.4% to AUD 4.03.

Commodity Update: The dollar was poised for a second consecutive weekly gain, supported by strong U.S. economic data, suggesting the Federal Reserve may delay further rate cuts. Gold dipped 0.05% to USD 3343.60, while silver rose 0.62% to USD 38.54 and copper advanced 0.51% to USD 9,723.65. Brent crude inched up 0.04% to USD 69.48 amid concerns over potential Iraqi oil supply disruptions and uncertainty surrounding U.S. tariff policy, which is impacting demand.

Our Stance: Australian equities extended their upward momentum, with the S&P/ASX 200 hitting a 100-day high, reflecting broad investor confidence despite looming global uncertainties. Gains across all sectors, particularly Health Care and Materials, signal solid domestic fundamentals. However, the global macro backdrop remains fragile. The potential upheaval in U.S. financial policy, particularly speculation over Fed leadership, threatens to disrupt currency and debt markets globally. For now, Australian market sentiment appears resilient. Market participants should stay alert to external shocks, especially from the U.S., which could quickly reverse the current scenario in Australian markets.

In its latest trading session, the S&P/ASX 200 Index rose 118.20 points to close at 8,757.20, supported by a bullish candlestick pattern and strong trading volumes, which signal continued investor confidence and enthusiasm. Technically, the index remains firmly above its 21-period Simple Moving Average (SMA), reinforcing a near-term positive outlook. A key support level to watch is 8,680.70. A decisive breakout above this threshold could mark a significant bullish development, potentially reshaping market sentiment and opening the door for further gains. From a broader perspective, the index’s position above the 50-period SMA on the weekly chart further solidifies its long-term bullish foundation, indicating that the underlying trend remains intact and supportive of continued upward momentum