Market Wrap / Trump's first week

Retail stocks boosted the local market during Friday’s session, while optimism was also boosted by another record high on the US S&P 500. 

The S&P/ASX 200 gained 0.4% to 8408.90 points, and was up 1.2% on the week. 

The consumer discretionary space jumped 2.2%, while the financial sector gained 0.4%. The energy sector fell 1.4% after President Trump said he would ask OPEC and Saudi Arabia to bring down the cost of crude oil, at a speech at the World Economic Forum in Davos. Myer shares rose for a fourth straight session while Premier Investments snapped a four-session losing streak after shareholders of both retailers approved Myer's merger with PMV's apparel brands business. Meanwhile Kogan shares went against the current and cratered by 15.2% as Citi said its latest earnings update missed consensus by 7%. 

Wesfarmers rose 3.2% after Goldman Sachs turned positive on the conglomerate,  upgrading the Bunnings owner's shares to a buy rating with an improved price target of $78.70, a near 9% upside. 

In Tokyo, the Bank of Japan delivered its biggest interest rate hike in 17 years, raising its overnight call rate to 0.5% from 0.25% with eight voting members in favour with one dissenting. Rates in Japan are now at their highest level since the global financial crisis in 2008. 

PMI data is expected in the US tonight which might influence the Fed as it hands down its rate decision on Wednesday local time. The ECB and BOC also deliver monetary policy decisions next week, while locally December quarter CPI is due on Wednesday. Financial markets are closed in Australia on Monday for the Australia Day holiday.