ASX 200 Falls 0.27% After Hitting 50-Day High, Marks Fourth Weekly Gain

Image Source : Krish Capital Pty Ltd

Index Update: The S&P/ASX 200 closed 23.20 points lower on Friday, down 0.27% at 8,515.70, despite hitting a 50-day high earlier in the session. Gains in mining and energy stocks supported early trading following a positive phone call between U.S. President Donald Trump and China's Xi Jinping regarding trade tariffs. Over the past five days, the index rose 0.96%, marking its fourth consecutive weekly gain, though it remains 1.15% below its 52-week high. Sector performance was mixed, with nine of eleven sectors closing lower. The energy sector led gains, rising 0.70% on Friday and 1.77% for the week.

Macro Update: U.S. job growth likely slowed in May amid continued uncertainty over tariffs, though not enough to prompt the Federal Reserve to cut interest rates. The Labor Department is expected to report an unchanged unemployment rate at 4.2% for the third straight month, along with steady wage growth, providing some support to the broader economy. However, economic outlook is softening, with economists citing inconsistent tariff policies and political resistance to fiscal plans as key factors undermining business confidence. May could mark the beginning of a broader slowdown in job gains.

Top Market Movers: Whitehaven Coal (ASX: WHC) led the ASX gainers on Friday, rising 3.58% to close at AUD 5.79. Qantas Airways (ASX: QAN) followed with a 3.46% gain to AUD 10.76, while Nufarm (ASX: NUF) advanced 2.38% to AUD 2.15. On the downside, West African Resources (ASX: WAF) recorded the sharpest decline, falling 8.40% to AUD 2.40. Nuix (ASX: NXL) dropped 6.12% to AUD 2.30, and Regis Resources (ASX: RRL) slid 5.83% to AUD 4.85.

Commodity Update: The dollar faced a weekly decline on Friday amid weak U.S. economic data and stalled trade talks ahead of a key deadline. Markets awaited the U.S. nonfarm payrolls report for further cues. Gold rose 0.30% to USD3,385.55, silver gained 1.06% to USD36.17, and copper edged up 0.28% to USD9,749.45. Brent crude slipped 0.12% to USD65.22 but was set for its first weekly gain in three weeks.

Our Stance: Despite a soft finish on Friday, the S&P/ASX 200 continues to show resilience, supported by strength in energy and mining. Market sentiment is cautious amid ongoing uncertainty surrounding U.S. job growth and global trade tensions. Investors will closely watch upcoming economic data, especially the U.S. nonfarm payrolls report, which could influence Federal Reserve policy expectations. Volatility may continue, particularly in interest rate-sensitive and export-driven stocks. Domestically, sector rotation and stock-specific factors are likely to drive performance, with a focus on commodities and companies exposed to global trade developments.

The S&P/ASX 200 closed 23.20 points lower, reflecting a challenging trading session marked by the formation of a small bearish candlestick on the daily chart. Elevated trading volume accompanied the decline, signaling investor caution and market indecision. Despite the modest pullback, the index remains above its 50-period Simple Moving Average (SMA) on the daily chart, which now serves as a key support level essential for maintaining the prevailing uptrend. A notable support zone around 8,400 reinforces this structure—holding above this level would help sustain recent gains and preserve bullish sentiment. On the weekly chart, the index is also trading above its 21-period SMA, adding a layer of long-term technical strength. This dual alignment—above the 50-SMA on the daily and the 21-SMA on the weekly—continues to support the case for upward momentum, underpinned by both short- and medium-term trend structures.