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Trump Era Begins: Markets Rise, ASX To Follow?

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Trump Takes Office: Will ASX Ride the Global Market Rally?

Global markets rallied on Friday in anticipation of Donald Trump’s inauguration, with the S&P 500 gaining 1% and Bitcoin surging over 5%. This positive momentum is tempered by uncertainty surrounding Trump’s policies, particularly regarding trade and their potential impact on Australia. ASX futures suggest a 0.3% rise, or 28 points, to 8,317 this morning.

S&P 500 Performance
The S&P 500 closed 1% higher, driven by consumer discretionary stocks. Nvidia was a standout performer, rising 3.1% on Friday.

Bitcoin Surge
Bitcoin’s price jumped over 5% to US$106,020.80, continuing its volatile trajectory. This surge comes amidst increasing mainstream acceptance of cryptocurrencies.

ASX Futures
ASX 200 futures predict a 0.3% rise this morning, suggesting a positive start to the trading day. This follows the positive trend seen in international markets overnight.

Australian Dollar
The Australian dollar remains near a four-year low against the US dollar, inching up slightly to US$0.6198. Concerns about Chinese economic growth continue to weigh on the currency.

Iron Ore Price
The benchmark Singapore iron ore futures contract rose 1.3% to US$104.00 a tonne. This reflects ongoing demand for iron ore in the global market.

US 10-Year Yield
The US 10-year yield settled at 4.62%, reflecting investor sentiment towards US government debt. This key indicator can influence global borrowing costs.

Macau Gambling Sector
Coal magnate Xingchun Wang’s investment in the Macau gambling sector is under scrutiny. The motivations behind his investment remain unclear, raising questions about the sector’s future.

ASX Outlook
The ASX is expected to follow the global trend, opening higher today. Investors will be watching closely for any impact from Trump’s inauguration and his policy announcements.

AMP Chief Economist’s Caution
AMP chief economist Shane Oliver has expressed caution about the market’s optimism. He cites the mixed nature of the incoming administration’s policies as a reason for tempered expectations.

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