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Index Update: The S&P/ASX 200 slipped 12.30 points or 0.14% on Thursday to close at 8,831.40, pausing after setting a fresh 52-week high. Despite the minor retreat, the benchmark remains up 1.01% over the past five sessions and just 0.20% below its recent peak. Market sentiment was tempered by renewed global trade tensions after U.S. President Donald Trump introduced new tariff measures, while anticipation grows for a potential interest rate cut by the Reserve Bank next week. Sector performance was mixed. Health Care and Industrials dragged the index, falling 1.16% and 0.94%, respectively. Meanwhile, Consumer Discretionary led the gainers with a 0.89% rise, followed by modest gains in Information Technology (+0.40%) and A-REITs (+0.39%).
Macro Update: U.S. President Donald Trump has warned of potential tariffs as high as 250% on pharmaceutical imports from Australia and other countries, signaling a dramatic escalation in trade policy. Trump has revealed new details about his administration’s plan to impose steep duties on foreign drugmakers to incentivize domestic production of medicines. The proposed tariffs are part of a broader strategy to reduce reliance on overseas pharmaceutical supply chains and bring more manufacturing jobs back to the United States.
Top Market Movers: Westgold Resources (ASX: WGX) led the ASX gainers on Thursday, rising 5.07% to AUD 2.90, followed by AMP Limited (ASX: AMP), which climbed 4.79% to AUD 1.75. Boss Energy (ASX: BOE) also gained 4.11%, closing at AUD 1.78. On the downside, ASX Limited (ASX: ASX) tumbled 8.62% to AUD 64.22, Clarity Pharmaceuticals (ASX: CU6) dropped 6.01%, and News Corporation (ASX: NWS) fell 3.93% to AUD 53.13.
Commodity Update: The dollar slipped against major currencies on Thursday amid rising expectations of Federal Reserve rate cuts and concerns over political influence on U.S. institutions. Gold gained 0.28% to USD 3,443.10, while silver rose 0.48% to USD 38.08. Copper dipped 0.04% to USD 9,686.40. Brent crude rebounded 0.30% to USD67.09, ending a five-day slide, supported by steady U.S. demand and eased supply fears amid potential U.S.-Russia-Ukraine talks.
Our Stance: The ASX 200 dipped slightly by 0.14% to 8,831.40 on Thursday, retreating after reaching a 52-week high. While the broader index remains resilient, just 0.20% off its recent peak, investor mood was dampened by two opposing forces: Trump’s aggressive tariff threats on pharmaceuticals and local expectations of an RBA rate cut. The proposed 250% U.S. tariff, if realised, could deeply impact Australia’s exports and weigh on health sector sentiment. Though Consumer Discretionary outperformed, defensives like Health Care lagged. Given this scenario of global risk and domestic monetary easing, near-term volatility might persist, with selective sector opportunities emerging.
The S&P/ASX 200 Index ended a challenging session with a modest decline of 12.30 points, forming a small bearish candlestick on elevated trading volume. Despite the pullback, the index continues to trade above its 50-period Simple Moving Average (SMA) on the daily chart, a key support level closely monitored by traders. A critical support zone lies near 8,690. Holding above this level could aid in consolidating recent gains and sustaining bullish sentiment. On the weekly chart, the index remains above its 21-period SMA, reinforcing the potential for continued upward momentum. The alignment of bullish signals across daily and weekly timeframes underscores the index’s underlying resilience and supports a broadly positive outlook, even amid short-term volatility.







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