Image Source : Krish Capital Pty Ltd

Index Update: The Australian share market hit a record high on Tuesday, with the S&P/ASX 200 climbing 36.00 points, or 0.41%, to 8,880.80 after the Reserve Bank’s third rate cut of the year spurred broad-based gains. The index reached a new 100-day peak and is now just 0.06% shy of its 52-week high, having advanced 1.26% over the past five sessions. Eight of eleven sectors finished higher, led by utilities (+0.84%), consumer discretionary (+0.83%), and financials (+0.83%). Materials (+0.37%), energy (+0.34%), and health care (+0.23%) also rose, while industrials (-0.85%), information technology (-0.16%), and A-REITs (-0.03%) declined.

Macro Update: In a major announcement on Tuesday, Australia’s central bank lowered its main cash rate by 25 basis points to 3.60%, the lowest in two years, pointing to easing inflation and a softer labour market, while signalling caution over further rate cuts. Concluding its two-day policy meeting, the Reserve Bank of Australia said recent data and revised forecasts indicated core inflation is likely to settle near the midpoint of its 2%–3% target range, assuming a steady pace of policy relaxation.

Top Market Movers: Life360 Inc. (ASX: 360) led gains on Tuesday, surging 7.80% to AUD 40.77, followed by Light & Wonder Inc. (ASX: LNW), which climbed 6.01% to AUD 130.43, and JB Hi-Fi Limited (ASX: JBH), up 5.58% to AUD 113.85. On the downside, SGH Limited (ASX: SGH) plunged 8.50% to AUD 47.45, Clarity Pharmaceuticals Ltd (ASX: CU6) slid 8.04% to AUD 3.43, and Liontown Resources Limited (ASX: LTR) dropped 8.00% to AUD 0.92.

Commodity Update: The U.S. dollar held steady on Tuesday ahead of a key U.S. consumer inflation report that could influence Federal Reserve rate cut expectations. Gold eased 0.10% to USD 3,401.20, while silver rose 0.14% to USD 37.84 and copper gained 0.27% to USD 9,759.20. Brent crude added 0.39% to USD 66.89 as the U.S. and China extended a pause on higher tariffs, easing trade war concerns and supporting fuel demand in both economies.

Our Stance: The Australian share market reached a fresh record high following the Reserve Bank’s third rate cut this year, boosting the S&P/ASX 200 to 8,880.80. Most sectors saw gains, led by utilities and consumer discretionary. The central bank’s move to lower the cash rate to 3.60% signals easing inflation pressures and a softer labour market, though further cuts remain uncertain. Commodity prices were mixed, though easing U.S.–China trade tensions helped sentiment. The outlook seems positive for now, but future gains will depend on stable global conditions and supportive national economic data.

In its latest session, the S&P/ASX 200 Index advanced 36.00 points to close at 8,880.80, supported by a bullish candlestick pattern and strong trading volumes signals of sustained investor confidence. Technically, the index remains well above its 21-period Simple Moving Average (SMA), reinforcing a positive near-term outlook. Key support is seen at 8,780.90, while a decisive breakout above this level could mark a significant bullish development, potentially shifting market sentiment and paving the way for further gains. From a broader perspective, the index’s position above the 21-period SMA on the weekly chart underscores its solid long-term bullish foundation.