Index Update: The S&P/ASX 200 closed higher on Thursday, rising 65.80 points, or 0.75%, to 8,848.70, moving back above its 125-day moving average. Australian equities advanced despite a strong domestic jobs report and rising interest rate expectations, with investors instead focusing on easing geopolitical tensions surrounding Greenland. Over the past five sessions, the benchmark has remained largely flat and sits 2.92% below its 52-week high. Nine of the 11 sectors finished higher, led by energy, which gained 2.98% on the day and 3.13% over five days.

Macro Update: Australia’s labour market strengthened in December, with the seasonally adjusted unemployment rate easing to 4.1%, according to data released by the Australian Bureau of Statistics. Employment rose by 65,000, supported by gains in both full-time roles (+55,000) and part-time work (+10,000), with higher employment among people aged 15–24 contributing to the improvement. Male employment increased by 49,000, while female employment rose by 17,000. The participation rate edged up to 66.7%, despite a 30,000 decline in unemployment. Offshore, U.S. equities advanced and Treasury yields fell after President Donald Trump said a framework agreement over Greenland had been reached and planned February tariffs on several European countries would not proceed.

Top Market Movers: On Thursday, Premier Investments (ASX:PMV) led gains, rising AUD 1.26 or 9.87% to AUD 14.02, followed by Droneshield (ASX:DRO) up AUD 0.41 (9.49%) to AUD 4.73, and Mesoblast (ASX:MSB) climbing AUD 0.17 (6.80%) to AUD 2.67. On the downside, Pantoro Gold (ASX:PNR) fell AUD 0.65 (-11.21%) to AUD 5.15, Vault Minerals (ASX:VAU) dropped AUD 0.62 (-9.86%) to AUD 5.67, and Emerald Resources (ASX:EMR) declined AUD 0.69 (-8.67%) to AUD 7.27.

Commodity Update: The U.S. dollar held onto overnight gains against major peers on Thursday after President Donald Trump withdrew earlier tariff threats against several European NATO nations, easing trade-related concerns. Gold declined 1.06% to USD 4,786.20, while silver slipped 0.09% to USD 92.55. Copper rose 0.56% to USD 12,823.90. Brent crude edged up 0.15% to USD 65.34, supported by reduced trade tensions and a steadier global demand outlook.

Our Stance: Australia’s sharemarket rose on Thursday, with the S&P/ASX 200 gaining 65.80 points, or 0.75%, to 8,848.70, moving back above its 125-day moving average. The boost came despite strong jobs data and higher interest rate expectations, as investors focused on easing geopolitical tensions over Greenland. Employment strengthened in December, with the unemployment rate falling to 4.1% and participation rising to 66.7%. Premier Investments (ASX:PMV), Droneshield (ASX:DRO), and Mesoblast (ASX:MSB) led gains, while Pantoro Gold (ASX:PNR), Vault Minerals (ASX:VAU), and Emerald Resources (ASX:EMR) underperformed. Commodities were mixed, with copper up and gold slipping. Overall, the market shows selective sector strength, cautious optimism prevails, and investors remain watchful of macro signals.

In the latest session, the S&P/ASX 200 Index advanced 65.80 points to close at 8,848.70, supported by a bullish candlestick formation and strong trading volumes, both of which reflect sustained investor confidence. On the daily chart, the index continues to trade above its 21-period Simple Moving Average (SMA), which is acting as dynamic support and reinforcing the prevailing short-term bullish bias. A key support zone is located near 8,780, and holding above this level will be critical to maintaining the constructive price structure. Sustained support could allow the index to consolidate recent gains while preserving upside momentum. From a broader perspective, the index also remains above its 50-period SMA on the weekly chart, highlighting a constructive medium- to long-term outlook. Overall, the technical setup points to continued upside potential, provided near-term support levels remain intact.