Index Update: The Australian share market witnessed its worst day in three weeks on Monday, with the S&P/ASX 200 falling 75.50 points, or 0.84%, to close at 8,882.80. Over the past five sessions, the index has declined 1.16% and sits 1.90% below its 52-week high. Market sentiment was hit after US President Donald Trump escalated the trade conflict with China.

10 of the 11 sectors finished lower alongside the broader market, with information technology recording the steepest drop of 1.98%. Despite limited movement, the A-REIT sector emerged as the best performer for the day, though it has fallen 1.39% over the past five sessions.

Macro Update: Tensions between the U.S. and China escalated sharply as the U.S. president threatened to impose 100% tariffs on Chinese imports, rattling global markets. The annual IMF and World Bank meetings are now expected to focus on whether Trump's pledge to retaliate against China’s expanded rare-earth export controls could trigger a renewed trade war between the world’s two largest economies.

Adding to the strain, China announced matching levies on U.S.-built or flagged vessels and those owned by U.S.-based investors.

Top Market Movers: Regis Resources Limited (ASX:RRL) led the gains, climbing 7.03% to close at AUD 6.09. Catalyst Metals Limited (ASX:CYL) followed with a 5.23% rise to AUD 7.64, while Bellevue Gold Limited (ASX:BGL) advanced 5.11% to AUD 1.24. On the downside, Treasury Wine Estates Ltd (ASX:TWE) recorded the sharpest fall, plunging 15.04% to AUD 5.93. Pinnacle Investment Management Group Ltd (ASX:PNI) dropped 5.81% to AUD 18.01, while HUB24 Limited (ASX:HUB) fell 5.64% to AUD 99.14.

Commodity Update: The U.S. dollar rebounded on Monday after an early selloff, as hopes grew that Washington might soften its latest trade measures against Beijing. Political uncertainty in France and Japan weighed on the euro and yen. Commodities strengthened, with gold up 1.58% to USD 4,063.40, silver rising 3.24% to USD 48.79, and copper gaining 1.78% to USD 10,600.00. Brent crude advanced 1.70% to USD 63.78, recovering from earlier losses.

Our Stance: The S&P/ASX 200 dropped 0.84% to 8,882.80 on Monday, as losses across 10 of 11 sectors weighed on the broader index. Technology stocks bore the brunt with a 1.98% decline, while the A-REIT sector outperformed despite limited gains. Over the past five sessions, the index has fallen 1.16% and remains 1.90% below its 52-week high. On the macro front, heightened U.S.-China trade tensions dominated sentiment after the U.S. threatened 100% tariffs on Chinese imports, prompting retaliatory measures from China and unsettling global markets. Commodity markets saw a rebound, with gold, silver, copper, and Brent crude strengthening, while the U.S. dollar steadied following earlier losses. Overall, domestic market performance remained under pressure, with investors closely monitoring trade developments and geopolitical risks that continue to drive volatility.

The S&P/ASX 200 Index declined by 75.50 points in its latest session, forming a bearish candlestick pattern accompanied by rising trading volumes. This setup reflects short-term caution among investors and underscores a prevailing bearish bias in the near term. Despite the recent pullback, the index continues to trade above its 50-period Simple Moving Average (SMA), which now acts as a key immediate support zone. On the daily chart, crucial support is identified near 8,887.09. Sustaining levels above this threshold may allow the index to consolidate recent gains and reaffirm confidence in the broader uptrend. From a weekly perspective, the index remains positioned above its 21-period SMA, maintaining a constructive technical structure that supports the potential for sustained bullish momentum over the longer term provided near-term support levels hold firm.