index Update: Australian equities edged lower on Friday, with the S&P/ASX 200 slipping 8.10 points to close at 8,946.90. The modest decline marked a pause in momentum, as the benchmark index snapped a three-week winning streak amid cautious positioning ahead of the weekend.

Despite the daily pullback, the index has remained broadly flat over the past five sessions and continues to trade 2.78% below its 52-week high.

Market sentiment softened across the region, with investors trimming exposure despite tentative progress around a potential extension of the US-Iran ceasefire. The cautious tone was reflected in sector performance, where six of the eleven sectors finished in negative territory. Information Technology emerged as the standout performer, rising 1.20% on the day and extending its five-day gain to 12.96%, indicating a recovery trend within the sector even as broader market direction remained subdued.

Macro Update: Global finance leaders from the Group of Seven (G7) economies have underscored the urgency of containing the economic fallout from a prolonged Middle East conflict, while reiterating the need to work toward a sustainable peace, according to Reuters.

The issue was a central focus during discussions between finance ministers and Central Bank governors on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington.

In addition to geopolitical risks, the G7 addressed the importance of strengthening critical mineral Supply chains and reaffirmed support for Ukraine amid ongoing conflict with Russia, as outlined in a statement from France’s finance ministry, which currently holds the G7 presidency.

Top Market Movers: Among the top performers, Zip Co Limited (ASX:ZIP) led gains, rising AUD 0.280 or 13.658% to AUD 2.330. Tabcorp Holdings Limited (ASX:TAH) followed, up AUD 0.070 or 7.486% to AUD 1.005. Mineral Resources Limited (ASX:MIN) also advanced, gaining AUD 4.200 or 7.077% to close at AUD 63.540. On the downside, Temple & Webster Group Ltd (ASX:TPW) declined AUD 0.460 or 6.461% to AUD 6.660. Catalyst Metals Limited (ASX:CYL) fell AUD 0.340 or 5.023% to AUD 6.430, while Whitehaven Coal Limited (ASX:WHC) dropped AUD 0.420 or 4.989% to AUD 8.000.

Commodity Update: On Friday, the Japanese yen weakened after the Bank of Japan refrained from signaling a rate hike next week, while traders remained cautious and stayed on the sidelines ahead of potential U.S.–Iran peace talks. Gold fell 0.07% to USD 4,805.05 per ounce, silver rose 0.27% to USD 78.925, and copper slipped 0.16% to USD 13,243.15. Meanwhile, Brent Crude declined 1.01% to USD 98.38 per barrel, amid optimism over a Lebanon–Israel ceasefire and possible U.S.–Iran discussions.

Our Stance: Australian equities showed mild fatigue after a strong run, with the ASX 200’s dip reflecting profit-taking rather than a shift in underlying trend. Stability over the week suggests resilience, though geopolitical uncertainty and cautious positioning may cap near-term upside. Strength in Information Technology signals selective recovery and investor appetite for growth pockets. Globally, G7 focus on conflict risks and Supply chains reinforces a fragile macro backdrop. Commodity moves and a softer U.S. dollar indicate improving risk sentiment, yet not decisively. Overall, markets appear balanced between optimism on easing tensions and prudence amid unresolved geopolitical and economic risks, keeping momentum measured in the short term.

The S&P/ASX 200 declined by 33.60 points in the latest session, forming a bearish candlestick that reflects mild profit booking. Despite this, the index continues to trade above its 21-period Simple Moving Average (SMA), which is acting as a key dynamic support and helping maintain the broader positive structure. Holding above this level may support near-term stability and cushion downside risks. However, immediate support is seen near 8,840.50, and a decisive break below this zone could weaken sentiment, potentially triggering a deeper corrective phase and increasing near-term Volatility.