index Update: The S&Amp;P/ASX 200 finished notably higher on Friday, rising 138.80 points or 1.62% to close at 8,731.70, while also moving above its 50-day Moving Average. Australian equities recorded a second straight monthly advance, with the benchmark index gaining 0.51% in May as easing geopolitical tensions in the Middle East improved investor sentiment and weighed on oil prices. Over the past five trading sessions, the index added 0.86% and remains broadly flat year to date. Nine of the 11 sectors closed higher, led by Materials, which climbed 2.89% for the session and 3.34% over five days.

Macro Update: The World Economic Forum’s latest Chief Economists’ Outlook indicates growing concern over the global economy, with most economists expecting weaker growth and higher Inflation over the next year as Middle East tensions disrupt energy, food and fertilizer Supply chains. While regions such as Europe and the Middle East face mounting economic pressures, the United States, India and parts of South-East Asia are viewed as relatively resilient due to domestic Demand, infrastructure Investment and policy support. Despite rising Volatility and inflation risks, only a small proportion of economists expect a global Recession in the near term.

Top Market Movers: Among the top gainers, 4DMedical Limited (ASX:4DX) surged 18.86% to AUD 3.97, while Judo Capital Holdings Limited (ASX:JDO) climbed 12.23% to AUD 1.56. Vulcan Energy Resources Limited (ASX:VUL) also advanced 9.62% to AUD 3.99. On the losing side, IDP Education Limited (ASX:IEL) declined 16.17% to AUD 2.23, Champion Iron Limited (ASX:CIA) fell 6.90% to AUD 4.45, and Dexus (ASX:DXS) slipped 5.40% to AUD 5.61 during the session.

Commodity Update: The U.S. dollar weakened on Friday after reports suggested that Washington and Tehran had reached a 60-day memorandum of understanding to extend the current ceasefire and begin fresh negotiations on Iran’s nuclear program. The development improved risk sentiment across global markets. Gold rose 0.06% to USD 4,534.70 per ounce, while silver gained 0.27% to USD 76.12. Copper slipped 0.06% to USD 13,717.00. Meanwhile, Brent Crude declined 0.50% to USD 93.24 per barrel and remained on track for a weekly loss as investors assessed easing geopolitical tensions between the U.S. and Iran.

Our Stance: Australian equities closed the week on a positive note, with the S&P/ASX 200 advancing above its 50-day moving average and extending monthly gains. Improved market sentiment was supported by easing Middle East tensions, softer oil prices, and broad-based sector participation, led by Materials. While global economic growth expectations remain under pressure amid persistent inflation and supply chain concerns, recession risks are still viewed as limited. Commodity markets reflected a shift toward risk-on sentiment, with lower crude prices and a weaker U.S. dollar supporting investor confidence. Looking ahead, inflation trends, geopolitical developments, and Central Bank policy signals are likely to remain key market drivers.

The S&P/ASX 200 advanced by 138.80 points in the latest Trading session, although the formation of a bullish candlestick pattern. Technically, the index continues to trade above its 50-day Simple Moving Average (SMA), which remains a key dynamic support level and helps maintain the broader bullish structure. Immediate support is now positioned near the 8,600 mark, and holding above this level could help stabilise sentiment and preserve the prevailing uptrend. However, a decisive breakdown below 8,600 may weaken the current technical outlook, potentially triggering a deeper corrective phase and increasing near-term volatility across the Australian Equity market.