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Index Update: The S&P/ASX 200 closed sharply lower on Wednesday, falling 161.80 points or 1.82% to 8,738.80, its lowest level in 20 days and extending its five-day loss to 2.47%. The market weakness came despite the latest ABS data showing the economy grew 0.6% in the June quarter 2025, rebounding from March quarter softness.
The index now trades 3.49% below its 52-week high. All 11 sectors finished in negative territory, with Information Technology leading the declines, down 3.85%, followed by Financials (-2.76%) and A-REITs (-2.40%). Consumer Discretionary was the least affected, slipping 0.37% but extending its five-day drop to 2.39%. The broad-based weakness highlights continued market caution amid recent volatility.
Macro Update: Australian GDP grew 0.6% in the June quarter 2025 (seasonally adjusted, chain volume measure), rebounding from March quarter weakness, according to data released today by the Australian Bureau of Statistics (ABS). Annual growth reached 1.8%, while GDP for the 2024–25 financial year rose 1.3%. Domestic final demand was the main driver, supported by household and government spending, though public investment weighed on growth. Net trade also boosted GDP, with mining commodity exports contributing at the higher end. GDP per capita increased 0.2% over the quarter, while the terms of trade fell 1.1% and the household saving-to-income ratio declined to 4.2% from 5.2%.
Top Market Movers: GrainCorp Limited (ASX: GNC) led the gains on Wednesday, rising AUD 0.300 or 3.68% to close at AUD 8.45, followed by Tabcorp Holdings (ASX: TAH) up 2.97% and PEXA Group (ASX: PXA) up 2.16%. On the downside, Xero Limited (ASX: XRO) fell AUD 9.90 or 6.20% to AUD 149.75, while Lendlease Group (ASX: LLC) and Megaport Limited (ASX: MP1) dropped 5.24% and 4.77% respectively.
Commodity Update: The British pound and yen weakened on Wednesday amid renewed concerns over global government finances and political uncertainty in Japan. Precious metals traded mixed, with gold rising 0.15% to USD 3,597.40, while silver slipped 0.06% to USD 41.57 and copper eased 0.13% to USD 9,980.30. Brent crude edged down 0.01% to USD 69.13, though it maintained sanctions-driven gains as traders awaited the upcoming OPEC+ meeting this weekend for fresh supply cues.
Our Stance: The sharp 1.82% drop in the S&P/ASX 200, despite a rebound in the June quarter GDP, reflects lingering market anxiety over household finances and external risks. Falling terms of trade and a lower savings ratio suggest pressure on consumers, which could weigh on future domestic demand. Market participants appear unconvinced by the GDP rebound, focusing instead on global macro uncertainty and policy risks. With tech and financial stocks leading declines, sentiment remains fragile, and volatility could persist until clarity emerges from global monetary policy signals.
The S&P/ASX 200 Index closed lower by 161.80 points, forming a bearish candlestick pattern. Despite this pullback, the broader technical structure remains constructive. On the daily chart, the index is trading below its 21-period SMA, which is acting as a key resistance level. A critical support zone is placed near 8,640.50; holding above this area could enable the index to consolidate recent gains and reinforce investor confidence in the prevailing uptrend. From a broader perspective, the index remains above its 50-period SMA on the weekly chart, highlighting the potential for sustained bullish momentum.







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