index Update: The S&P/ASX 200 extended losses on Wednesday, falling 108.10 points or 1.26% to close at 8,496.60, marking its lowest level in 20 trading sessions. The benchmark index has now declined 1.55% over the past five days and remains down 2.50% year to date. Australian equities weakened as investors sold heavyweight Mining and banking stocks amid rising concerns that escalating geopolitical tensions and higher oil prices could reignite Inflation pressures. Market sentiment across Asia also deteriorated as a Global Bond sell-off intensified, pushing yields higher and strengthening expectations for tighter Monetary Policy. Sector performance was broadly negative, with 10 of 11 sectors closing lower. Consumer Staples emerged as the strongest sector, gaining 0.32% for the session and 1.32% over the past five trading days.

Macro Update: According to fresh data released by the Australian Bureau of Statistics (ABS), total wages and salaries paid by employers reached AUD110.56 billion in March 2026, rising 1.4% from February and 6.0% higher than a year earlier. The payments represented around 15.5 million employee jobs, highlighting continued resilience in Australia’s labour market despite mounting global uncertainty. At the same time, Commonwealth Bank chief economist Luke Yeaman warned that risks tied to the Iran conflict, elevated oil prices and inflation remain key threats to the economic outlook. CBA noted that a prolonged Strait of Hormuz disruption could drive oil above US$150 per barrel and increase the risk of further RBA rate hikes.

Top Market Movers: Among the top gainers, Technology One Limited (ASX:TNE) climbed 7.338% to AUD29.840, adding AUD2.040 during the session. SGH Limited (ASX:SGH) advanced 3.109% to AUD41.450, up AUD1.250, while Dalrymple Bay Infrastructure Limited (ASX:DBI) gained 3.001% to close at AUD5.490, rising AUD0.160. On the losing side, Tuas Limited (ASX:TUA) dropped 16.854% to AUD2.220, shedding AUD0.450. 4DMedical Limited (ASX:4DX) declined 10.137% to AUD3.280, down AUD0.370, while Predictive Discovery Limited (ASX:PDI) fell 8.982% to AUD0.760, losing AUD0.075 for the session.

Commodity Update: The U.S. dollar held near a six-week high on Wednesday as investors assessed the possibility of prolonged higher interest rates to contain inflation pressures linked to the Iran conflict, while the Japanese yen remained close to intervention-sensitive levels. Gold declined 0.51% to USD 4,462.40 per ounce, silver slipped 0.17% to USD 73.90, and copper eased 0.25% to USD 13,391.00. Brent Crude fell 0.40% to USD 110.83 per barrel after President Donald Trump said the Iran war could end “very quickly,” though Supply disruption concerns continued to support caution.

Our Stance: Australian equities remained under pressure on Wednesday as the S&P/ASX 200 dropped 1.26% to a fresh 20-day low amid broad-based selling in mining and banking stocks. Investor sentiment weakened across Asia as rising oil prices, geopolitical tensions linked to the Iran conflict, and a sharp sell-off in global bonds fuelled concerns around inflation and the prospect of tighter monetary policy. While ABS data showed Australia’s labour market remained resilient, with wages and salaries rising 6.0% year-on-year in March, markets continued to focus on external risks, including potential energy supply disruptions. Despite weakness across most sectors, selective defensive buying in Consumer Staples suggested investors remain cautious rather than fully risk averse.

S&P/ASX 200 Index declined by 108.10 points in the latest session, forming a bearish candlestick pattern that reflects renewed selling pressure and a more cautious market tone. From a technical perspective, the index remains below its 21-day Simple Moving Average (SMA), which continues to act as dynamic resistance and cap near-term upside momentum. Immediate support is located near the 8,410.60 level; holding above this zone could help stabilise sentiment and preserve the broader short-term uptrend. However, a decisive break below 8,410.60 would weaken the technical structure and increase the risk of a deeper corrective phase accompanied by heightened Volatility.