Market Wrap / Trump 2.0

The Australian market started the new trading week with a broad rally, as global optimism was boosted by a friendly phone call between incoming US President Trump and Chinese President Xi.The S&P/ASX 200 closed higher by 37 points or 0.5% to 8347.40.

The banks supported those gains while the materials sector stayed flat.

In the financial sector, Macquarie pushed ahead with a 1.9% gain. Meanwhile the Insignia Financial bidding war continued developing with the company saying it has offered CC Capital due diligence for a limited period of time. 

Rio Tinto gained 1.1%, helping the overall materials sector while South32 gained 0.9% after reaffirming its production guidance.

Elsewhere, Karoon Energy fell 5.7% after the company flagged to the market that one of its part-owned exploration well will be permanently abandoned due to unsuccessful drilling.

Star Entertainment also lost ground. Its unaudited quarterly results showed revenue fell 15%, and the company has said a lack of liquidity represents a "material uncertainty" in the foreseeable future. 

Tomorrow, markets will react to Trump’s inauguration, while we’ll also receive quarterly updates from local miners BHP, Liontown and Northern Star. US Markets are closed tonight for Martin Luther King Junior Day.