Source: Krish Capital Pty Ltd

Index Update: The Australian equities market made a decent start to the trading week, driven by a rebound in healthcare stocks and gains in the financial sector, following last week’s US-imposed tariffs on the healthcare sector. The S&P/ASX 200 gained momentum on Monday, climbing 75.10 points, or 0.85%, to finish at 8,862.80, surpassing its 50-day moving average. The index has risen 1.02% over the past five days, though it remains 2.12% below its 52-week high. Nine of the 11 sectors posted gains, with financials leading, up 1.72% on the day and 0.56% over the week. Healthcare followed, posting a 1.29% gain for the day.

Macro Update: A recent publication by S&P Global has highlighted that U.S. policy uncertainty, though easing, continues to weigh on the global macroeconomic landscape. Tariffs and broader policy measures remain a key focus for clients and stakeholders, underpinning credit condition forecasts. While global activity has been stronger than anticipated, growth drivers are narrowing, and the U.S. labor market is showing clear signs of weakening. Bright spots include oil prices and data centres, while financial conditions remain supportive, bolstered by high asset prices, declining bond yields, tight spreads, and the Federal Reserve’s first rate cut of the year in September.

Top Market Movers: Top movers on the ASX on Monday saw DroneShield Limited (ASX: DRO) lead gains, climbing 17.96% to AUD 4.40, followed by Austal Limited (ASX: ASB) up 4.55% to AUD 7.58 and Evolution Mining Limited (ASX: EVN) rising 4.38% to AUD 10.73. On the downside, Iluka Resources Limited (ASX: ILU) fell 3.94% to AUD 6.34, Digico Infrastructure REIT (ASX: DGT) dropped 3.65% to AUD 2.64, and Whitehaven Coal Limited (ASX: WHC) declined 3.38% to AUD 6.57.

Commodity Update: The dollar eased on Monday ahead of upcoming U.S. economic releases that may clarify the Federal Reserve’s rate direction, while concerns about a potential government shutdown intensified. Gold gained 0.38% to USD 3,820.00, silver rose 0.23% to USD 46.76, and copper advanced 0.70% to USD 10,283.50. Brent crude fell 0.90% to USD 69.50 after Iraq’s Kurdistan restarted exports via Turkey and OPEC+ prepared for a fresh output increase in November.

Our Stance: Australian equities began the week on a positive note, buoyed by a rebound in healthcare and strength in financials. The S&P/ASX 200 closed up 0.85%, surpassing its 50-day moving average. Nine of eleven sectors advanced, with financials and healthcare leading. Despite recent gains, the index remains below its 52-week high. Globally, easing U.S. policy uncertainty continues to impact macro conditions, with narrowing growth drivers and a weakening U.S. labor market. Commodities showed mixed performance, while markets await further signals from the Federal Reserve. The market appears resilient, but cautious positioning is necessary as macro and policy risks could test momentum in the coming weeks.

In its latest session, the S&P/ASX 200 Index gained 75.10 points, closing at 8,862.80, underpinned by a bullish candlestick pattern and strong trading volumes clear indicators of sustained investor confidence. On the daily chart, the index continues to trade above its 21-period Simple Moving Average (SMA), which serves as dynamic support and supports the prevailing positive short-term outlook. A key support zone is identified near 8,790.50; maintaining levels above this threshold will be crucial for preserving the current uptrend structure. From a broader perspective, the index’s continued position above the 50-period SMA on the weekly chart underscores its robust long-term bullish foundation, reinforcing strength across multiple timeframes.