Index Update: The Australian sharemarket retreated on Wednesday, weighed by profit-taking in tech stocks and a sell-off in miners, as market anxiety grew over the potential global impact of China-backed Simandou iron ore production in Guinea. The S&P/ASX 200 index closed 11.70 points lower, or 0.13% down, at 8,802.00—its lowest level in 20 days. The benchmark is now 1.39% lower over the past five sessions and sits 3.44% below its 52-week high. Sector performance was mixed, with six out of 11 sectors ending in the red alongside the main index. Information Technology led losses, sliding 2.67%, while Telecommunications Services staged a rebound as the best performer, gaining 0.70%—though it remains down 1.62% for the week. Other notable sector moves included losses in Materials and A-REITs, and gains for utilities and financials.

Macro Update: Australia saw 1.2 million people wanting paid work but unable to secure a job in the 2024-25 period, according to latest figures from the Australian Bureau of Statistics (ABS). Nearly half of these individuals were officially classified as unemployed, while the remainder were either not actively searching for employment or not immediately available to start. Of this group, almost 1.1 million were ready to begin working straight away or within the next four weeks, with another 130,000 not available until later. Meanwhile, the cost of living continued its upward trend. The Living Cost Indexes (LCIs), which track how price changes for goods and services impact household expenses, rose between 0.6% and 1.5% during the September 2025 quarter. Housing and recreation were the biggest contributors to these increases across most household categories. Over the past year until the September quarter, LCIs climbed between 2.6% and 3.9%, highlighting persistent inflationary pressures on Australian households

Top Market Movers: Among the top gainers in the ASX 200 index, Fletcher Building Limited (ASX:FBU) rose 2.41% to close at AUD 2.97, Lovisa Holdings Limited (ASX:LOV) advanced 2.23% to AUD 37.09, and Brambles Limited (ASX:BXB) gained 2.18% to AUD 23.92. On the downside, Megaport Limited (ASX:MP1) slid 9.66% to AUD 15.81, Paladin Energy Ltd (ASX:PDN) fell 8.94% to AUD 8.46, and IDP Education Limited (ASX:IEL) declined 8.24% to AUD 5.01.

Commodity Update: The U.S. dollar strengthened on Wednesday amid a tech-led selloff on Wall Street that spread to Asia and divisions within the Federal Reserve, lowering chances of a December rate cut. Gold edged up 0.05% to USD 3,962.20 per ounce, while silver dipped 0.02% to USD 47.28, and copper rose 0.05% to USD 10,661. Brent crude fell 0.56% to USD 64.08 on demand concerns and rising U.S. inventories.

Our Stance: The S&P/ASX 200 closed 0.13% lower at 8,802.00, marking its weakest finish in 20 days as profit-taking and China-related commodity fears weighed on sentiment. The broader decline, led by tech and materials, comes amid troubling macro data — with 1.2 million Australians seeking work and living costs rising up to 1.5% in the September quarter, according to ABS. Persistent inflation and labour underutilisation continue to pressure household spending. Commodity markets remain mixed, with oil softening and gold steady, prompting investors to rotate toward defensive sectors in search of short-term stability amid global growth uncertainty.

The S&P/ASX 200 Index experienced a challenging session, closing lower with a bearish candlestick formation accompanied by rising trading volume. This combination indicates short-term selling pressure and reflects a cautious tone among market participants. On the daily chart, the index is trading below its 21-period Simple Moving Average (SMA), which has now turned into a key resistance level. This suggests that any immediate recovery attempts could face overhead supply near this zone. Critical support is observed around 8,720, and maintaining levels above this area will be essential to avoid a deeper retracement and preserve recent gains. From a broader perspective, the weekly timeframe remains constructive, as the index continues to trade above its 21-period SMA. This underscores resilience and supports the potential for sustained bullish momentum over the medium to long term.