Index Update: The S&P/ASX 200 closed higher on Tuesday, rising 81.50 points or 0.92% to 8,941.60, marking a fresh 50-day high. The benchmark has gained 1.43% over the past five sessions and sits around 1.90% below its 52-week high. Market breadth was positive, with 122 stocks advancing versus 65 decliners. Nine of 11 sectors finished higher, led by Telecommunications Services, which climbed 1.70% on the day.

Macro Update: According to a report on Reuters, the Federal Reserve is widely expected to keep interest rates unchanged at this week’s meeting, amid heightened political and leadership uncertainty. The final months of Chair Jerome Powell’s term are unfolding alongside a criminal investigation, a potential effort to remove Fed Governor Lisa Cook, and preparations to nominate Powell’s successor. Despite the backdrop, markets have shown limited concern, with inflation expectations and longer-term bond yields remaining stable.

Top Market Movers: Among the top gainers of Tuesday, Telix Pharmaceuticals (ASX:TLX) rose to AUD 11.860, up AUD 0.910 or 8.31%. Capstone Copper (ASX:CSC) climbed to AUD 16.070, gaining AUD 1.120 or 7.49%, while Pro Medicus (ASX:PME) advanced to AUD 190.170, up AUD 9.250 or 5.11%. On the downside, Alcoa (ASX:AAI) fell 8.85%, Life360 (ASX:360) dropped 8.64%, and DroneShield (ASX:DRO) declined 6.49%.

Commodity Update: The yen held firm on Tuesday after two consecutive sessions of sharp gains, keeping traders alert to the risk of coordinated currency intervention by authorities in the United States and Japan. Yen strength weighed on the dollar, which hovered near a four-month low amid concerns over a potential United States government shutdown and policy uncertainty. Gold declined 0.43% to USD 5,100.80, silver slipped 5.11% to USD 109.70, copper eased 1.56% to USD 13,037.00, while Brent crude fell 0.60% to USD 65.22.

Our Stance: Australian equities extended gains as the S&P/ASX 200 rose 0.92% to a fresh 50-day high, supported by broad-based sector strength and solid market breadth. Telecommunications Services led advances, while stock-specific moves dominated trading among healthcare, mining, and technology names. Globally, attention remains fixed on the US Federal Reserve, where rates are expected to stay unchanged despite rising political and leadership uncertainty. Commodity markets were mixed, with weaker precious metals and softer energy prices. Overall, momentum appears constructive, though global policy uncertainty may temper near-term risk appetite.

The S&P/ASX 200 Index posted a strong performance in the latest session, rising 81.50 points to close at 8,941.60. The index formed a modest bullish candlestick supported by robust trading volumes, highlighting sustained investor confidence and renewed buying interest across the market. From a technical perspective, the index continues to trade comfortably above its 21-period Simple Moving Average (SMA) on the daily chart, which is acting as an important dynamic support and reinforcing the prevailing short-term uptrend. The 8,860.50 support zone remains a key level to monitor, as holding above this area would help preserve the current bullish structure and could encourage further consolidation before the next leg higher. On a weekly timeframe, the index remains well above its 50-period SMA, underscoring a constructive medium- to long-term technical outlook. Overall, the technical setup suggests continued upside potential, provided key support levels remain intact.