Image Source : Krish Capital Pty Ltd

Index Update: The S&P/ASX 200 closed higher on Thursday, advancing 50.60 points or 0.59% to finish at 8,589.20, moving above its 20-day moving average. The index neared record territory, buoyed by a positive lead from Wall Street after the US Federal Reserve maintained a dovish stance and Chinese construction data pointed to a possible recovery. Notably, Nasdaq Composite ended previous day session 0.94% higher at 20,611.34 points and Dow Jones Industrial Average ended 0.49% higher at 44,458.30 points. While the benchmark is virtually flat over the past five sessions, it now sits just 0.58% below its 52-week high. Seven of the eleven sectors ended in positive territory, with Materials emerging as the top performer, climbing 1.24% for the day, though still down 1.96% over the week.

Macro Update: U.S. President Donald Trump has announced a new round of tariffs on five countries—Malaysia, Kazakhstan, Myanmar, Laos, and South Africa—effective August 1. Malaysia and Kazakhstan will face 25% tariffs targeting exports such as electronics, energy, and industrial metals. Myanmar and Laos are subject to steeper 40% tariffs, while South Africa will be hit with a 30% rate. The announcement, made via official letters and Trump’s Truth Social account, includes a warning that any retaliatory measures will trigger further U.S. action. This move follows earlier 25% tariffs on imports from Japan and South Korea, key American allies in Asia. Meanwhile, Australia’s business turnover dipped by 0.1% in May 2025 (seasonally adjusted), marking the first monthly decline since October 2024, according to data released by the Australian Bureau of Statistics. “This marks the first monthly decrease in business turnover since October 2024,” said Robert Ewing, ABS Head of Business Statistics.

Top Market Movers: Leading the ASX 200 gains were Lifestyle Communities Limited (ASX: LIC), which climbed 9.28% to AUD 4.83, Liontown Resources Limited (ASX: LTR), up 6.67% to AUD 0.80, and Lovisa Holdings Limited (ASX: LOV), which added 5.09% to close at AUD 33.06. On the downside, Domino’s Pizza Enterprises Limited (ASX: DMP) led the losses, falling 3.99% to AUD 18.03, followed by Digico Infrastructure Limited (ASX: DGT), down 3.81% to AUD 3.03, and Telix Pharmaceuticals Limited (ASX: TLX), which declined 3.62% to AUD 24.47.

Commodity Update: The U.S. dollar eased from a two-week high on Thursday after President Trump’s new tariff threats had limited market impact. Gold edged up 0.25% to $3,328.70, silver rose 0.17% to $36.69, and copper gained 0.35% to $9,667.50. Brent crude dipped 0.10% to $70.09 as investors weighed fresh U.S. tariff announcements and a sharp increase in crude inventories, which raised concerns about demand.

Our Stance: The S&P/ASX 200 climbed 0.59% to 8,589.20 on Thursday, nearing record highs amid Wall Street gains and optimism about China’s construction sector. Materials led with a 1.24% rise, while Lifestyle Communities, Liontown Resources, and Lovisa were standout performers. Global trade tensions resurfaced after Trump announced new tariffs on five countries, including Malaysia and South Africa. Domestically, ABS data showed a 0.1% dip in May business turnover—the first drop since October 2024. Commodity markets were mixed: gold, silver, and copper edged higher, while Brent crude fell on rising U.S. inventories and demand concerns.

In its latest trading session, the S&P/ASX 200 Index advanced 50.60 points to close at 8,589.20, supported by a bullish candlestick pattern and strong trading volumes that reflect continued investor confidence and enthusiasm. From a technical standpoint, the index remains firmly above its 21-period Simple Moving Average (SMA), reinforcing a positive near-term outlook. A key level to monitor is the resistance at 8,620 a decisive breakout above this threshold could signal a significant bullish development, potentially reshaping market sentiment and paving the way for further gains. Looking at the broader trend, the index’s position above the 50-period SMA on the weekly chart further strengthens its long-term bullish foundation. However, sustaining this upward momentum will depend on the index’s ability to surpass and hold above the 8,620 resistance level.