Stock market expected to increase before new administration takes office; Bitcoin surpasses $106,000.

The Australian stock market is poised for a positive opening following a late surge on Wall Street before Donald Trump’s presidential inauguration. Futures indicate that the S&P/ASX 200 index will climb by 0.3%, or 28 points, reaching 8317 on Monday.

On Friday, the S&P 500 index concluded with a 1% gain, driven by a widespread rally, particularly in consumer discretionary stocks, with Nvidia leading the charge with a 3.1% jump. Furthermore, Bitcoin experienced a surge of over 5% overnight, reaching $106,020.

As Trump prepares to assume office as the 47th President of the United States, market analysts are monitoring the possibility of unexpected policy changes on his first day. Trading in US equities will be closed on Monday in observance of Martin Luther King Jr. Day.

Since Trump’s victory in November, the ASX has surged more than 2%, buoyed by hope that his promises to deregulate and lower taxes will benefit businesses. Investors are particularly interested in Trump’s proposed tariffs and their potential impact on Australia’s currency and its primary trading partner, China.

The Australian dollar remains near a four-year low against the US dollar, partly due to concerns about Chinese economic growth. On Monday, the Australian dollar saw a slight gain, trading at $0.6198 US dollars.

In the commodities market, the benchmark Singapore iron ore futures contract increased by 1.3%, reaching $104.00 per ton.

Among the notable developments in stock news, CC Capital has initiated due diligence on Insignia Financial, marking a breakthrough in the bidding war for the $3 billion financial services provider. South32 reported a 5% rise in aluminium production in the second half of 2024, attributable to increased output from its Brazil Aluminium and Mozal Aluminium mines.