Index Update: Australian equities finished green on Friday, with the S&P/ASX 200 Index climbing 170.8 points, or 1.98%, to close at 8,804.0, reclaiming territory above its 200-day moving average. The benchmark has advanced 2.07% over the past five trading sessions and now sits 4.33% below its 52-week high.

Market gains were widespread, with nine of the eleven sectors closing in positive territory. The Materials sector emerged as the standout performer, rising 4.06% on the day, while remaining up 0.79% over the past week. Other notable gainers included Consumer Discretionary (+2.05%), A-REITs (+1.80%), Financials (+1.61%), and Industrials (+1.44%). Defensive sectors such as Utilities (+1.07%) and Consumer Staples (+0.79%) also posted gains. In contrast, Energy (-0.46%) and Telecommunication Services (-0.29%) were the only sectors to finish lower.

The rally pushed Australian shares to their highest level in approximately five weeks. Investor sentiment improved after US President Donald Trump indicated that a peace agreement with Iran could potentially be reached as early as this weekend, fuelling expectations that tensions in the region may ease.

Macro Update: President Donald Trump said on Thursday that the United States was making progress toward a potential agreement with Iran, signalling a shift from earlier remarks that had suggested further military action and possible targeting of Iran’s oil infrastructure. According to Trump, Iran’s Supreme Leader, Mojtaba Khamenei, had approved a framework that could be finalised within days, potentially opening the door to additional discussions on Iran’s nuclear programme.

Trump also stated that he had called off a planned next phase of military strikes following two days of U.S. air operations, citing developments in peace negotiations. His comments reinforced expectations that diplomatic efforts between Washington and Tehran may be gaining momentum despite recent tensions.

Top Market Movers: Among the top gainers on the ASX, Genesis Minerals Limited (ASX:GMD) led the advance, rising AUD 0.520, or 10.83%, to AUD 5.320. The a2 Milk Company Limited (ASX:A2M) followed, gaining AUD 0.560, or 10.18%, to AUD 6.060, while Liontown Resources Limited (ASX:LTR) climbed AUD 0.195, or 9.82%, to AUD 2.180. On the downside, IDP Education Limited (ASX:IEL) was the session’s biggest decliner, falling AUD 0.150, or 6.58%, to AUD 2.130. News Corporation (ASX:NWS) shed AUD 1.880, or 4.26%, to AUD 42.300, while Viva Energy Group Limited (ASX:VEA) slipped AUD 0.080, or 3.43%, to AUD 2.250.

Commodity Update: The U.S. dollar weakened on Friday after President Donald Trump said a peace agreement with Iran was nearing completion and could be signed soon. Trump also confirmed that planned military strikes against Iran had been cancelled, improving risk sentiment and reducing safe-haven demand. In commodities, gold climbed 2.42% to USD 4,213.65 per ounce, silver surged 5.05% to USD 67.24 per ounce, and copper advanced 1.59% to USD 13,704.00 per tonne. Meanwhile, Brent crude oil fell 1.50% to USD 89.05 per barrel amid easing geopolitical concerns.

Our Stance: Australian equities ended the week on a cheerful note, with the S&P/ASX 200 rising 1.98% to 8,804.0 and extending its five-day gain to 2.07%. The advance was broad-based, with nine of eleven sectors finishing higher, led by Materials (+4.06%), while Consumer Discretionary, A-REITs and Financials also recorded solid gains. Market sentiment improved after US President Donald Trump indicated that a peace agreement with Iran could be finalised in the coming days and confirmed the cancellation of planned military strikes, easing geopolitical concerns. Among individual stocks, Genesis Minerals, a2 Milk and Liontown Resources led gains, while IDP Education, News Corporation and Viva Energy lagged. Commodity markets were mixed, with gold, silver and copper advancing while Brent crude declined. Markets might remain sensitive to further developments in US-Iran negotiations, with any confirmation of diplomatic progress likely to support risk appetite.

The S&P/ASX 200 gained 170.80 points in the latest trading session, forming a bullish candlestick pattern that reflects improving market sentiment. From a technical perspective, the index continues to trade above its 50-day Simple Moving Average (SMA), which remains an important dynamic support level and helps reinforce the broader positive trend. Immediate support is located near 8,730.50, and holding above this level could help preserve bullish momentum and maintain the market's constructive structure. Conversely, a decisive break below 8,730.50 would weaken the technical outlook, potentially triggering a deeper corrective move and increasing near-term market volatility.