Index Update: The Australian sharemarket extended its rally on Wednesday, with the S&P/ASX 200 gaining 24.20 points, or 0.27%, to 9,153.20, reaching a fresh 50-day high despite Wall Street's decline following hotter-than-expected US Inflation data. Ten of 11 sectors advanced, led by Information Technology (+1.52%), Utilities (+1.30%) and Materials (+0.77%), while Financials slipped 0.35%. Technology stocks maintained momentum, climbing 12.21% over five sessions. The benchmark has gained 3.61% during the same period and sits just 1.54% below its 52-week high, highlighting continued buying interest despite global interest-rate uncertainty.
Macro Update: Australia’s new home loan commitments plunged 15.5% to AUD 81.16 bn in the September 2026 quarter, marking a record quarterly decline, according to the Australian Bureau of Statistics (ABS). Investor lending values tumbled 32.3%, while loan numbers dropped 30.6%.
Meanwhile, US consumer prices rose 0.4% in October 2026, easing from September’s 0.6% increase but exceeding expectations. Energy inflation moderated to 0.7%, supported by declining gasoline prices, while persistent inflation pressures kept expectations of further Federal Reserve interest-rate hikes elevated.
Top Market Movers: Life360 Inc. (ASX:360) led gains, surging 10.05% to AUD 20.810, followed by Elevra Lithium Limited (ASX:ELV), which climbed 9.70% to AUD 4.070. Sunrise Energy Metals Limited (ASX:SRL) advanced 7.69% to AUD 14.000. Among decliners, NEXTDC Limited (ASX:NXT) fell 3.99% to AUD 10.360, while PEXA Group Limited (ASX:PXA) dropped 3.38% to AUD 7.140. Breville Group Limited (ASX:BRG) slipped 3.15% to AUD 32.300, rounding out the three biggest losers.
Commodity Update: The US dollar held near a two-week high in early Asian trading on Wednesday, supported by stronger-than-expected inflation data and hawkish Federal Reserve comments, which strengthened expectations of a rate hike next month. Gold gained 0.46% to USD 4,049.35, silver advanced 2.11% to USD 52.30, and copper rose 1.05% to USD 13,805.00. Brent Crude increased 0.50% to USD 92.02, supported by declining US oil inventories and continued focus on US-Iran de-escalation prospects.
Our Stance: The ASX 200’s climb to a fresh 50-day high reflects resilient investor sentiment, with technology stocks driving momentum despite global inflation concerns. Broad-based sector gains and a 3.61% five-day advance suggest sustained buying interest, although weakness in financial stocks warrants attention. Meanwhile, declining Australian home loan commitments and persistent US inflation highlight emerging macroeconomic challenges. Rising gold, silver, copper and oil prices indicate continued activity across Commodity markets. Looking ahead, the benchmark’s proximity to its 52-week high offers scope for further gains, although interest-rate expectations, economic data and global market Volatility could influence near-term direction.
From a technical perspective, the S&P/ASX 200 index advanced during the latest trading session; however, the near-term outlook remains dependent on its ability to sustain above key support at 9,110. Immediate resistance is positioned near 9,180, where the index may encounter selling pressure. A failure to break above this level could limit further upside and lead to renewed consolidation. A decisive break below 9,110 could weaken the broader technical structure, intensify bearish momentum and expose the index to further downside towards lower support levels. Overall, the outlook remains cautiously positive, although a breakdown below key support could shift sentiment towards bearish territory.







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