Index Update: The Australian share market closed flat on Friday, as a pullback in consumer discretionary stocks offset strong advances among gold miners following a rebound in precious metal prices. The S&P/ASX 200 edged down 3.60 points to close at 8,881.90, leaving the benchmark 1.52% lower for the week and 2.56% below its 52-week peak. Sector performance was mixed, with seven of 11 sectors closing higher. The energy sector led the gains, rising 0.60% on Friday and 1.55% over the past five days.

Macro Update: Producer prices in Australia rose by 1.0% in the September 2025 quarter, bringing the annual increase in final demand (excluding exports) to 3.5%. The quarterly rise was primarily driven by growth across the Services industries and the Construction industry, reflecting continued demand in infrastructure and business services. Meanwhile, the Export Price Index fell 0.9% this quarter but remained slightly higher, up 0.1% over the year. Key contributors to the annual increase were non-monetary gold (+42.7%) and metalliferous ores and metal scrap (+2.1%). The Import Price Index declined 0.4% for the quarter but rose 2.3% through the year, with telecommunications equipment (-3.4%) being a major contributor to the quarterly fall.

Top Market Movers: Gold miners dominated Friday’s top gainers, with Vault Minerals (ASX:VAU) jumping 5.80% to AUD 0.73, Westgold Resources (ASX:WGX) climbing 5.35% to AUD 5.32, and Regis Resources (ASX:RRL) advancing 5.06% to AUD 6.44. Among the biggest decliners, Steadfast Group (ASX:SDF) tumbled 9.68% to AUD 5.60, followed by Droneshield (ASX:DRO) down 5.90% to AUD 3.83, and Alcoa Corporation (ASX:AAI) slipping 4.90% to AUD 56.67.

Commodity Update: The U.S. dollar steadied near a three-month high in early Asian trade Friday as markets digested mixed cues from central bank moves, tech earnings, and a tentative U.S.-China tariff truce. Gold rose 0.23% to USD 4,026.50, while silver slipped 0.09% to USD 48.57, and copper gained 0.35% to USD 10,952.00. Brent crude fell 0.51% to USD 64.67, marking its third consecutive monthly decline.

Our Stance: The Australian share market ended the week flat, with gains in gold miners offset by weakness in consumer discretionary stocks. The S&P/ASX 200 eased 3.60 points to 8,881.90, closing 1.52% lower for the week and 2.56% below its 52-week high. Energy led sector gains, up 0.60% for the day and 1.55% over five days. Recent producer price data from the ABS suggests inflationary pressure remains persistent, particularly in services and construction, indicating sustained cost pass-through to businesses. Gold’s rebound and mining sector strength underscore investor rotation toward defensive and inflation-sensitive assets. However, falling export and import prices highlight softening external demand. Overall, market sentiment appears cautious, balancing commodity-linked momentum against lingering inflation and trade headwinds.

In its latest session, the S&P/ASX 200 Index edged 3.60 points lower, forming a small bearish candlestick pattern accompanied by rising trading volume a combination that indicates short-term investor caution and reinforces a prevailing bearish bias. Despite the minor pullback, the index continues to trade above its 21-period Simple Moving Average (SMA), which currently serves as immediate resistance. On the daily chart, a key support level is located near 8,820, and sustained closes above this zone could help consolidate recent gains and restore confidence in the broader uptrend. From a weekly perspective, the index remains positioned above its 21-period SMA, a constructive longer-term signal suggesting the potential for sustained upward momentum once short-term selling pressure eases.