Index Update: The S&P/ASX 200 closed lower on Thursday, slipping 46.10 points or 0.52% to 8,753.40 — marking a new 50-day low. The benchmark index has declined 0.85% over the past five sessions and now sits 3.97% below its 52-week high. Sector performance was mixed, with nine of eleven sectors ending in the red. Information Technology (-3.92%), A-REITs (-2.84%), and Telecommunications Services (-2.31%) led the losses, while Materials outperformed with a +1.71% gain and a five-day rise of +4.71%. The broader market weakened as stronger-than-expected labour force data dampened investor hopes for near-term interest rate cuts.

Macro Update: Australia’s labour market showed renewed strength in October, with the seasonally adjusted unemployment rate easing to 4.3%, down from 4.5% in September, according to data from the Australian Bureau of Statistics (ABS). The number of unemployed people fell by 17,000, while employment rose by 42,000 during the month. The participation rate held steady at 67.0%, and the employment-to-population ratio remained unchanged at 64.0%, reflecting continued stability in labour force engagement. The modest drop in unemployment reinforces the resilience of Australia’s job market, potentially tempering expectations for near-term interest rate cuts.

Top Market Movers: The top gainers on the ASX were IGO Limited (ASX:IGO), rising 15.27% to AUD 6.72, followed by Domino’s Pizza Enterprises (ASX:DMP), up 11.65% to AUD 21.46, and Liontown Resources (ASX:LTR), gaining 10.27% to AUD 1.45. On the downside, DroneShield (ASX:DRO) plunged 31.40% to AUD 2.25, while GrainCorp (ASX:GNC) fell 10.84% to AUD 7.98 and Xero (ASX:XRO) declined 9.03% to AUD 127.36.

Commodity Update: The yen hovered near a record low against the euro and a nine-month low versus the dollar after Japan’s new prime minister urged the central bank to proceed cautiously on rate hikes. Gold slipped 0.25% to USD 4,202.90 per ounce, while silver and copper edged higher. Brent crude dipped 0.03% to USD 62.69 as rising U.S. inventories fueled concerns over ample global supply amid subdued demand.

Our Stance: The S&P/ASX 200 fell 0.52% to 8,753.40 on Thursday, hitting a new 50-day low as strong labour data reduced expectations of near-term rate cuts. Most sectors declined, led by Information Technology (-3.92%) and A-REITs (-2.84%), while Materials outperformed with a 1.71% gain. Australia’s unemployment rate eased to 4.3% in October, reflecting labour market resilience. Among movers, IGO Limited (ASX:IGO) surged 15.27%, while DroneShield (ASX:DRO) slumped 31.40%. Commodity markets were mixed, with gold and oil edging lower. The strong employment figures highlight economic stability, but persistent strength in the labour market could delay monetary easing, pressuring rate-sensitive sectors even as resources continue to offer relative support amid global uncertainty.

In its latest session, the S&P/ASX 200 Index declined by 46.10 points, forming a bearish candlestick on rising trading volume a combination that reflects short-term investor caution and reinforces the prevailing bearish sentiment. Despite the modest pullback, the index continues to trade below its 50-period Simple Moving Average (SMA), which remains a key zone of immediate resistance. On the daily chart, crucial support is noted near 8,700. Sustaining trade above this level could help the index stabilize recent gains and restore market confidence. From a broader weekly perspective, the index continues to hold above its 21-period SMA, a constructive long-term signal that suggests the potential for sustained upward momentum once near-term selling pressure subsides.