Australian shares are set to advance on the first day of the new United States presidency following the inauguration of Donald Trump for a second term on Tuesday (AEDT).
Futures market trading pointed to the benchmark S&P/ASX 200 index opening 0.33% higher when trading resumed at 10 am AEDT (11 pm GMT).
At 9:50 am AEDT the S&P/ASX 200 March share price index (SPI) contract was up 28 points at 8,327 points.
The S&P/ASX 200 had finished 0.5% higher on Monday, ahead of the swearing-in ceremony.
In the absence of trading on Wall Street, which was closed for the Martin Luther King Jnr Holiday on Monday, investors will instead look elsewhere for guidance about where to set equities prices.
US futures trading indicated it would be a positive session in New York on Tuesday.
CommSec said in its Morning Report that investors were betting a series of immediate actions by Trump would boost the U.S. economy, especially in areas like the banking and energy sectors.
Morgans Financial private client adviser Lachlan Walsh said Trump’s announcement that he would not immediately impose on imports from countries like China, Canada and Mexico probably contributed to the positive tone in futures trading.
He said the new President’s declaration of a national energy emergency, which pushed down crude oil prices, was likely to pressure the prices of oil stocks like Woodside Petroleum and Santos.
“The only thing saving us is that Aussie dollar has picked up a bit,” Walsh said.
He expected the market to be quiet until ASX-listed companies started publishing their results for the period ending 31 December in February.
“It will be pretty subdued news wise today. It’s such a catalyst-driven market. You need something to get it going. We are sitting here waiting for reporting season,” he said.
On fixed interest markets, Australian Government bonds yields were higher with 10 year paper up 0.11% at 4.450% and two-year paper up 0.13% at 3.918%.