index Update: The S&P/ASX 200 rebounded on Tuesday, rising 99.40 points or 1.17% to close at 8,604.70 after earlier touching a fresh 20-day low. Australian equities recovered from a seven-week low following comments from US President Donald Trump indicating a delay in further military strikes on Iran, a development that contributed to lower oil prices and improved market sentiment. Despite the rebound, the benchmark index remains down 0.76% over the past five trading days and 1.26% lower year to date. Market Breadth was broadly positive, with nine of the 11 sectors finishing higher alongside the benchmark. Consumer Staples led sector gains, advancing 3.00% on the day and 1.42% over the past five sessions.

Macro Update: Rising energy prices linked to the escalating Middle East conflict are forcing economists to reassess the global economic outlook for 2026, with S&P Global warning that Inflation could remain elevated for longer while economic growth weakens further. The group now expects Brent Crude prices to stay above US$100 per barrel through the remainder of 2026 as disruptions linked to the Strait of Hormuz continue affecting Supply and shipping conditions. S&P Global also lifted inflation forecasts into 2027, citing broadening price pressures beyond energy markets, including rising producer costs and Commodity inflation. The outlook has prompted expectations of additional rate hikes in parts of Europe, while the US Federal Reserve’s anticipated rate cuts have now been pushed further into 2027.

Top Market Movers: Among the top gainers, TUAS Limited (ASX:TUA) climbed 17.62% to AUD2.67, while ALS Limited (ASX:ALQ) advanced 6.83% to AUD23.32. Ora Banda Mining Ltd (ASX:OBM) also moved higher, rising 6.04% to AUD1.405. On the losing side, 4DMedical Limited (ASX:4DX) fell 8.75% to AUD3.65, Predictive Discovery Limited (ASX:PDI) declined 7.74% to AUD0.835, and DroneShield Limited (ASX:DRO) slipped 6.07% to AUD2.94.

Commodity Update:  The U.S. dollar weakened on Tuesday after Donald Trump said a planned strike on Iran had been postponed as negotiations continued, easing immediate geopolitical concerns. Gold slipped 0.14% to USD 4,551.90 per ounce, silver declined 0.99% to USD 76.70, and copper fell 0.66% to USD 13,506.80. Brent crude dropped 2.30% to USD 109.55 per barrel after the U.S. extended a sanctions Waiver on seaborne Russian oil exports, helping offset potential Middle East supply disruptions and reducing near-term energy market pressure.

Our Stance:  Australian shares rebounded notably on Tuesday, with the S&P/ASX 200 climbing 99.40 points or 1.17% to 8,604.70 after recovering from a seven-week low earlier in the session. Improved sentiment followed comments from US President Donald Trump signalling a delay in further military action against Iran, easing immediate geopolitical fears and helping oil prices retreat. Nine of the 11 sectors closed higher, led by Consumer Staples, while gains across several Large-Cap Stocks supported the broader recovery. Moreover, the S&P Global warned that prolonged Middle East disruptions could keep inflation elevated, delay global rate cuts and pressure economic growth through 2026, suggesting Volatility may continue across global Equity markets.

S&P/ASX 200 Index rose 99.40 points in the latest session, forming a bullish candlestick pattern that signals renewed buying interest and improving short-term sentiment. Technically, the index remains below its 21-day Simple Moving Average (SMA), which continues to act as dynamic resistance and may limit near-term upside momentum. Key support is located around the 8,500 level. As long as the index holds above this zone, the broader short-term uptrend is likely to remain intact. However, a decisive break below 8,500 would weaken the technical structure and raise the risk of a deeper corrective phase, with increased volatility and a more cautious market outlook.

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