Index Update: The S&P/ASX 200 closed Tuesday higher, gaining 126.50 points or 1.40% to finish at 9,145.80, marking a new 100-day high. The benchmark has advanced 2.21% over the past five sessions and is currently 0.62% below its 52-week peak. Ten of 11 sectors ended the session higher, led by Information Technology, which climbed 3.93% on the day and extended its five-day gain to 7.47%. Telecommunications Services rose 1.63%, while Health Care and Financials gained 2.36% and 1.93%, respectively. Utilities was the only sector to close lower, declining 0.42%. The market advance was supported by gains across technology stocks and major banks as easing Middle East tensions improved sentiment.

Macro Update: Australian household spending rose 0.8 per cent in June 2026 on a seasonally adjusted basis, following a 1.2 per cent increase in May and a 1.0 per cent decline in April, according to the ABS. Discretionary spending climbed 1.2 per cent, led by transport and recreation and culture. New vehicle sales lifted transport spending by 3.0 per cent, while air travel also recovered. Recreation and culture spending increased 1.4 per cent. Household spending volumes rose 0.7 per cent in the June quarter and 2.4 per cent annually.

Top Market Movers: DroneShield Limited (ASX:DRO) led the gainers, rising 14.600% or AUD 0.265 to AUD 2.080. Life360 Inc. (ASX:360) advanced 11.385% or AUD 2.910 to AUD 28.470, while Electro Optic Systems Holdings Limited (ASX:EOS) gained 8.933% or AUD 0.620 to AUD 7.560. Among the decliners, FireFly Metals Ltd (ASX:FFM) fell 8.871% to AUD 1.695. Viva Energy Group Limited (ASX:VEA) dropped 3.585% to AUD 2.690, while The Lottery Corporation Limited (ASX:TLC) declined 3.572% to AUD 5.400.

Commodity Update: Asian currencies traded mixed on Tuesday as investors remained cautious ahead of fresh developments surrounding proposed U.S.-Iran negotiations, while the Japanese yen edged lower after strengthening following last week's coordinated U.S.-Japan currency intervention. Commodity markets advanced, with gold rising 0.62% to USD 4,115.85 per ounce, silver gaining 1.80% to USD 58.89 per ounce, and copper increasing 0.56% to USD 13,927.70 per metric ton. Brent crude oil climbed 0.70% to USD 84.39 per barrel as persistent Middle East supply risks continued to outweigh recent price declines.

Our Stance: The Australian sharemarket extended its recent advance on Tuesday, with the S&P/ASX 200 rising 1.40% to close at 9,145.80 and reach a new 100-day high. Technology stocks led the broader rally, while gains across financials supported market momentum as easing Middle East tensions improved sentiment. The latest ABS data showed household spending increased in June, supported by discretionary categories including transport and recreation. Commodity prices also moved higher, with gains across gold, silver and copper. While the index continues to trade near recent highs, ongoing geopolitical developments and market expectations around economic conditions remain key factors to watch.

The S&P/ASX 200 Index advanced 126.50 points in the latest trading session, forming a strong bullish candlestick pattern that reflects renewed buying interest and improving investor sentiment. The index continues to maintain a constructive technical structure, with momentum indicators remaining supportive and suggesting that buyers are actively accumulating on market pullbacks, reinforcing the prevailing uptrend. From a technical perspective, immediate support is placed near 9,070.80. As long as the index holds above this key level, the broader bullish outlook is expected to remain intact, increasing the likelihood of a retest of recent highs. On the upside, a decisive breakout above the recent swing high of 9,215.30 would provide further confirmation of bullish strength and could pave the way for an advance towards the next resistance level near 9,350.00 in the coming sessions.