Index Update: The Australian sharemarket rebounded from Monday’s sell-off, with the S&P/ASX 200 closing up 93.60 points or 1.09% at 8,692.60, after hitting a 50-day low.

Nine of the eleven sectors finished higher, led by information technology (+1.94%) and materials (+1.87%). Energy fell sharply, down 2.91%, while consumer staples dipped 0.31%. Other notable gainers included health care (+1.75%), financials (+1.31%), and consumer discretionary (+1.27%).

Despite a 4.24% loss over the past five days, the ASX 200 remains virtually unchanged for the year to date.

Macro Update: Oil prices fell sharply on Tuesday after hitting a three-year high, as U.S. President Donald Trump suggested the Middle East conflict could be nearing an end.

Separately, Trump’s administration is reportedly considering reducing oil sanctions on Russia to help cool a surge in global energy prices triggered by the U.S. and Israeli war on Iran. The move aims to boost global oil supplies amid massive Middle East disruptions but could complicate U.S. efforts to limit Russian revenue for the war in Ukraine.

Top Market Movers: On Tuesday, Life360 Inc. (ASX:360) led the gainers, rising AUD 2.11 or 10.34% to AUD 22.51, followed by Neuren Pharmaceuticals Limited (ASX:NEU) up AUD 1.07 (9.16%) to AUD 12.75, and Droneshield Limited (ASX:DRO) gaining AUD 0.31 (8.36%) to AUD 4.02. On the downside, Pantoro Gold Limited (ASX:PNR) plunged AUD 1.10 (-22.50%) to AUD 3.79, with Helia Group Limited (ASX:HLI) down AUD 0.92 (-16.28%) and Karoon Energy Ltd (ASX:KAR) falling AUD 0.14 (-6.75%) to AUD 1.87.

Commodity Update: The U.S. dollar weakened, losing some of its safe-haven appeal amid speculation that the Middle East conflict may remain limited. Improved risk sentiment supported metals, with gold rising 1.51% to USD 5,181.50, silver surging 5.96% to USD 89.54, and copper gaining 1.17% to USD 13,083.00. Meanwhile, Brent crude fell 6.60% to USD 92.45 after hitting a three-year high earlier, as hopes of easing geopolitical tensions reduced concerns over global oil supply disruptions.

Our Stance: The Australian sharemarket bounced back on Tuesday, with the ASX 200 rising after Monday’s sell-off. Most sectors advanced, led by information technology and materials, while energy fell sharply. The rebound came as oil prices dropped below US$100 following U.S. indications that the Middle East tensions may ease, and reports that the Trump administration is considering reducing sanctions on Russian oil to boost global supply. Risk sentiment improved, supporting metals and the broader market. Despite recent volatility, the ASX 200 remains steady for the year. Markets might show cautious optimism, though geopolitical risks persist.

The S&P/ASX 200 delivered a strong rebound in the latest session, gaining 93.60 points to close at 8,692.60. Despite the recovery, the index continues to trade below its 21-period Simple Moving Average (SMA) on the daily chart, indicating that the broader near-term technical structure remains weak. Immediate support is seen around the 8,590 level, and a sustained move below this zone could intensify selling pressure and expose the index to further downside. On the weekly timeframe, the index also remains below its 21-period SMA, reinforcing a negative medium- to long-term trend. This setup suggests that while short-term rebounds may occur, overall sentiment remains cautious and downward pressure could persist in the near term.