Australian equity markets advanced today with gains spread across most sectors. The S&P/ASX 200 ended the session up 0.41 per cent, closing at 9,055.6 points. The broader All Ordinaries rose 0.38 per cent to 9,352.3 as trade momentum built on positive cues from Wall Street and renewed optimism around international trade talks.
ASX 200 today
Strong Start for ASX
Australia’s sharemarket opened higher as investor sentiment reflected strong US market performance and reports of a US-China trade framework. Overnight US inflation figures exceeded expectations, driving US indices to new highs and sparking bullish momentum for the local bourse. The ASX responded with an uplift across nearly all 11 sectors, bolstered by global data releases and local optimism.
Major Market Drivers
A landmark US-Australia critical minerals agreement and a rally in energy stocks lifted market confidence today. The S&P/ASX 200 intraday high reached 9,115.2 points before consolidating in late trade. Commodity prices supported profits as resources, including iron ore, copper and gold, continued their upward trend. The Australian dollar traded firmer at 65.32 US cents, strengthening alongside equity gains.
AUD to USD today
Top Movers and Sectors
AUB Group Ltd led gains on the S&P/ASX 200, rising 12.09 per cent to close at $35.98. Breville Group and DroneShield Ltd posted increases of 5.2 per cent and 4.8 per cent respectively, further highlighting sector diversity. The energy sector benefitted from oil price movements, with Santos Ltd and Woodside Energy Group Ltd performing solidly despite a minor dip in worldwide oil prices overnight. Gold stocks advanced as robust price forecasts prompted brokers to revise profit estimates, with Northern Star Resources holding at $23.99 and sector earnings upgrades projected through FY 2028.
AUB Group Ltd’s performance today
Company Announcements
Brokers named Northern Star Resources, Qantas Airways, and CSL among top picks for the week. Northern Star Resources received a buy rating with a $30 target, following its quarterly earnings update and optimism for ongoing gold price strength. Qantas shares climbed after analysts upgraded their rating and improved the price target to $12.29, citing strong quarterly performance and favourable cost discipline. CSL, a biotechnology leader, maintained its robust growth outlook, supported by global demand for its specialty pharmaceuticals.
Penny Stocks and Emerging Opportunities
Investor attention turned to penny stocks as smaller companies continued to showcase strong market activity. Alfabs Australia closed at $0.485 with a market cap of $139 million, while Dusk Group and IVE Group maintained upward momentum. Analysts highlighted that emerging stocks offer affordability and distinct growth prospects, especially as larger market players face increasing cost pressures.
Profit Forecasts and Earnings Trends
Surging commodity prices lifted ASX profit projections by over $4 billion, breaking a three-year cycle of declining earnings. Analysts forecast S&P/ASX 200 earnings growth of 7.1 per cent for 2026, double the estimate from the previous reporting season. The resources sector alone accounted for nearly half of profit upgrades, with major miners benefiting from high iron ore and copper prices. CSL and James Hardie also reported strong earnings updates, reinforcing their sector leadership.
Dividend and Income Stocks
Stable income trends continued among key dividend payers, with steady results across real estate, insurance and consumer sectors. Companies delivered consistent dividends, supporting investor portfolios amid broader market fluctuations.
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Broader Market Trends
Goldman Sachs strategist Matthew Ross noted a sharp rally in riskier stocks and highlighted renewed investor focus on cost discipline and capital returns during recent annual general meetings. Lower-quality stocks rose 90 per cent over six months, driven by resilient US GDP readings and reduced global tariff impacts. However, he cautioned that macroeconomic signals remain mixed, with stagnant job market indicators and Reserve Bank inflation commentary impacting long-term market forecasts.
Currency Movements
The Australian dollar traded stronger as global conditions improved, closing at 65.32 US cents. The currency gain reflected optimism in trade negotiations and positive economic sentiment, supporting broader market performance.
Economic Indicators
Headline inflation eased to 2.1 per cent annually in the June quarter, its lowest since March 2021, while trimmed mean inflation fell to 2.7 per cent. These figures reinforced expectations of interest rate stability and supported market gains as investors reacted positively to policy outlooks. The Reserve Bank’s indicative inflation measures provided assurances to equity market participants.
Outlook and Forecasts
ASX profit growth forecasts rose sharply with commodity prices, and analyst consensus shifted towards ongoing positive momentum for the months ahead. Companies focused on capital discipline and returned profits to shareholders, rather than increasing reinvestment at this stage. Investors remained vigilant for further macroeconomic updates as market volatility persisted.
Australian shares closed with broad gains, underpinned by commodities and global news, as optimism held steady across sectors. The trading session on October 27 confirmed the ASX’s resilience and growth potential as the market looks ahead to further international trade developments and earnings reports.
