Index Update: The Australian sharemarket snapped a three-day losing streak on Thursday, with the S&P/ASX 200 closing up 41.70 points (0.46%) at 9,020.10, supported by a stabilisation in bond markets and oil prices. The index, which touched a new 20-day low during the session, remains virtually flat over the past five days and sits 2.98% below its 52-week high. Eight of eleven sectors finished in positive territory, with Energy the weakest performer, shedding 1.24%, while Information Technology and Utilities also closed lower at -0.78% and -0.17% respectively. Financials led the gains, advancing 0.86% on the day and 2.65% over the past five sessions, followed by Health Care and A-REIT, both up 0.80%, and Industrials, which added 0.43%.

Macro Update: The Australian Bureau of Statistics today released two key economic reports. In the June 2026 quarter, total Assets of Australian securitisers grew $8.0 billion (3.5%) to $239.4 billion, with residential mortgages climbing $4.8 billion (2.8%) to $176.1 billion, while domestically issued asset-backed long-term Debt securities rose $5.6 billion (2.7%) to $214.7 billion.

On the trade front, Australia's seasonally adjusted goods trade balance narrowed by $418 million in July 2026, as goods exports fell $1.6 billion (3.3%), driven by declines in non-monetary gold and coal, while imports eased $1.2 billion (2.5%), led by lower fuel and lubricant spending.

Top Market Movers: Deep Yellow Limited (ASX:DYL) led advances, closing at AUD 1.670, up AUD 0.130 (8.441%), followed by Kingsgate Consolidated Limited (ASX:KCN), rising AUD 0.280 (5.415%) to AUD 5.450, and Pantoro Gold Limited (ASX:PNR), gaining AUD 0.130 (4.868%) to AUD 2.800. On the losing side, Elevra Lithium Limited (ASX:ELV) fell AUD 0.450 (5.403%) to AUD 7.880, Liontown Limited (ASX:LTR) dropped AUD 0.050 (4.033%) to AUD 1.190, and Lovisa Holdings Limited (ASX:LOV) shed AUD 0.880 (3.663%) to AUD 23.150.

Commodity Update: The U.S. dollar weakened on Thursday as softer expectations for energy-driven Inflation eased pressure on the Federal Reserve to raise interest rates. A weaker dollar supported bullion, with gold rising 1.22% to USD 4,469.70 and silver gaining 1.42% to USD 66.41. Copper advanced 0.28% to USD 14,260.25. Brent Crude fell 0.40% to USD 95.25 after three sessions of gains, as President Donald Trump said renewed attacks on Iran would not last “too long,” while U.S. officials pointed to resilient oil flows through the Strait of Hormuz.

Our Stance: The Australian sharemarket staged a modest but meaningful recovery on Thursday, with the S&P/ASX 200 rising 0.46% to 9,020.10, breaking a three-session losing run amid stabilising bond markets and easing oil prices. While the rebound is encouraging, the index remains 2.98% below its 52-week high and virtually flat over five days, suggesting underlying caution persists. Financials drove the recovery, gaining 0.86%, while Energy weighed with a 1.24% decline. Supportive macro signals, including growth in securitiser assets and easing Import costs, add a constructive backdrop, though softening export values and gold-dominated market movers reflect a market still searching for broader conviction.

On the technical front, the S&P/ASX 200 Index gained 41.70 points in the latest trading session, reinforcing the prevailing positive momentum. The index continues to hold above key support near 8,930.50, which remains crucial for sustaining the current bullish bias. A sustained hold above this level could support further recovery towards recent highs, while a decisive break below 8,930.50 would weaken the technical structure and increase downside risk. On the upside, a decisive breakout above the recent swing high near 9,060.60 would strengthen bullish momentum and potentially pave the way for further gains towards the next key target near 9,120.