• MTS Futures News_AM_20170105

    5 Jan 2017 | SET News

* The Dow Jones Industrial Average .DJI rose 0.3 percent to end at 19,942.16, while the S&P 500 .SPX gained 0.57 percent to 2,270.75. The Nasdaq Composite .IXIC added 0.88 percent to 5,477.01.

U.S. shares ended higher on Wednesday even after minutes from the Federal Reserve's December meeting showed concerns that quicker economic growth under President-elect Donald Trump could require faster interest rate increases to ward off inflation.

U.S. stocks have surged over the past two months on expectations that Trump will stimulate the economy with tax cuts and infrastructure spending and eliminate regulations in the financial industry.

But investors also worry that Trump's measures could stir inflation and push the U.S. central bank to raise rates more aggressively than anticipated.

* Asian stocks edged higher on Thursday, underpinned by a firm Wall Street after minutes from the Federal Reserve's December meeting suggested a less hawkish stance from policymakers.

MSCI's broadest index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS gained 0.2 percent, on track for a eighth consecutive session of gains. Early Asian markets such as Australia rose 0.4 percent.

Japan's Nikkei 225 traded weaker, down 0.17 percent after the yen strengthened against the greenback, as the dollar momentum waned overnight.

"The FOMC dot plots project three interest rate hikes in 2017 however the market is less optimistic with Fed Fund futures pricing in two hikes," said James Woods, global investment strategist at Rivkin Securities in Sydney.

"The market will now focus on Trump’s first 100 days where he sets the tone for his presidency and whether or not he will be able to implement his policies."

Reference: Reuters, CNBC

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