index Update: The Australian sharemarket finished higher on Wednesday, with the S&P/ASX 200 Index rising 59.90 points, or 0.69%, to close at 8,717.70. The benchmark index also moved above its 50-day Moving Average, signalling improved market momentum. Over the past five trading sessions, the ASX 200 has climbed 2.60%, although it remains largely flat for the year so far.

Market sentiment was supported by softer-than-expected April Inflation data, which strengthened expectations that the Reserve Bank of Australia may leave interest rates unchanged at its June board meeting. Gains were broad-based, with 10 of the 11 sectors finishing in positive territory. Consumer Discretionary stocks led the rally, advancing 1.81% on the day and 3.73% over the past five days.

Macro Update: Australia’s annual inflation eased in April 2026, with the Consumer Price Index (CPI) rising 4.2% over the 12 months, according to the latest Australian Bureau of Statistics (ABS) data. This compares with a 4.6% increase recorded in March, indicating a gradual cooling in price pressures. Housing remained the largest contributor to inflation, rising 6.3% year-on-year, while transport costs increased 6.6%, although both categories showed signs of easing compared to the previous month. Automotive fuel prices fell 7% in April after a sharp rise in March, helped by changes to fuel excise. Trimmed mean inflation edged higher to 3.4% annually.

Top Market Movers: Among the top gainers today, Megaport Limited (ASX:MP1) rose 8.629% to AUD 14.980, followed by Austal Limited (ASX:ASB), which gained 7.594% to AUD 4.250. SiteMinder Limited (ASX:SDR) also advanced 5.964% to AUD 3.020. On the losing side, ASX Limited (ASX:ASX) dropped 9.740% to AUD 46.060, while Endeavour Group Limited (ASX:EDV) declined 4.871% to AUD 2.930. Neuren Pharmaceuticals Limited (ASX:NEU) fell 4.089% to AUD 13.840.

Commodity Update: The U.S. dollar weakened slightly on Wednesday as traders reduced expectations of further Interest Rate hikes amid improving hopes for a potential peace agreement between Washington and Iran, although fresh U.S. strikes continued to support safe-haven Demand. Gold rose 0.08% to USD 4,538.50, silver gained 0.70% to USD 77.14, and copper advanced 0.67% to USD 13,730.10. Brent Crude declined 1.57% to USD 95.316 as U.S.-Iran negotiations continued despite recent exchange-of-fire reports.

Our Stance: The Australian sharemarket closed stronger on Wednesday, with the S&P/ASX 200 rising 0.69% to 8,717.70 as softer April inflation data improved investor sentiment and reinforced expectations that the Reserve Bank of Australia may keep rates unchanged in June. Broad-based buying lifted 10 of the 11 sectors, led by Consumer Discretionary stocks, while the index also moved above its 50-day moving average, signalling improving momentum. Commodity markets were mixed, with gold and copper edging higher while oil prices eased. Although the ASX 200 has gained 2.6% over the past week, investors are likely to remain cautious as inflation pressures and global geopolitical risks continue to evolve.

S&P/ASX 200 advanced 44.10 points in the latest Trading session, forming a bullish candlestick pattern that reflects improving market sentiment. The index continues to trade above its 21-day Simple Moving Average (SMA), which remains a key dynamic support level and reinforces the broader short-term recovery trend. Technically, immediate support is positioned near the 8,620.50 level, and maintaining strength above this zone could help sustain bullish momentum and further stabilise investor sentiment. However, a decisive break below 8,620.50 may weaken the current technical structure, increasing the risk of a deeper corrective move and heightened near-term market Volatility.