The Australian sharemarket’s recent surge appears poised to continue, with equity strategists forecasting that the S&P/ASX 200 will break new record highs during the upcoming earnings season.
The benchmark index has climbed 6% over the past five weeks, defying broader global uncertainty and signaling a shift in investor sentiment toward risk assets in the region.
Market participants are increasingly optimistic that a potential diplomatic resolution between the United States and Iran could alleviate shipping risks in the Middle East.
Such a development would open crucial trade routes, providing a significant tailwind for Australian exporters and reducing supply chain volatility.
This geopolitical easing is being viewed as a catalyst that could sustain the current momentum in equities.
The start of the corporate reporting season adds another layer of support for the rally.