Dow looks set to open at record high

By Tanya Agrawal

REUTERS - The Dow Jones Industrial average looked set to open at a record high on Monday, after the index capped off its best week since 2011 following Donald Trump's unexpected victory in the U.S. presidential election.

Since Trump's triumph last Tuesday, investors have been betting on his campaign promises to simplify regulation in the health and financial sectors and boost spending on infrastructure.

The S&P 500 was also set to open higher, while Nasdaq futures were little changed.

"Markets are showing that investors continue to believe the fiscal policy plans by Trump and they want to pile their bets in equities," said Naeem Aslam, chief market analyst at Think Markets UK Ltd.

"Trump delivered many watered down versions of his controversial views over the weekend. This has restored further confidence that the person in charge of the biggest economy of the world has started to think more logically."

However, stock markets around the world were affected by a continued selloff in the global bond market as investors looked for more clarity regarding Trump's policies.

The risk of faster domestic inflation and wider budget deficits if Trump goes on a spending binge sent yields on U.S. Treasury and other benchmark global bonds higher. The dollar index surged to an 11-month high.

Yields on the U.S. 10-year Treasury notes climbed to their highest since January on Monday at 2.30 percent, while 30-year paper shot above 3 percent.

S&P 500 e-minis were up 1.75 points, or 0.08 percent, with 235,123 contracts traded at 8:36 a.m. ET (1336 GMT).

Nasdaq 100 e-minis were down 9.5 points, or 0.2 percent, on volume of 38,389 contracts.

Dow e-minis were up 46 points, or 0.24 percent, with 51,864 contracts changing hands.

Investors are now keeping an eye on who will be appointed to President-elect Trump's administration.

"Trump's transition will remain a big factor influencing financial markets the weeks ahead, especially as he starts revealing the names of people who will serve in his administration," said Hussein Sayed, chief market strategist at FXTM.

A host of U.S. Federal Reserve officials are scheduled to make appearances on Monday, including Dallas Fed President Rob Kaplan, Richmond Fed President Jeffrey Lacker and San Francisco Fed President John Williams.

Fed Chair Janet Yellen is scheduled to testify on the economic outlook before the congressional joint economic committee in Washington on Thursday.

The central bank is widely expected to raise interest rates at its December meeting, with traders pricing in an 81 percent chance, according to CME Group's FedWatch tool.

Fed Vice Chairman Stanley Fischer said on Friday economic growth prospects appear strong enough for a gradual hike in interest rates.

Oil prices were at around three-month lows as the prospect of another year of oversupply and weak prices overshadowed chances that OPEC would reach a deal to cut output. [O/R]

Harman International rose 25.9 percent to $110.32 after Samsung Electronics announced an $8 billion deal to buy the company.

Mentor Graphics surged 19.1 percent to $36.53 in premarket trading after Siemens agreed to buy the company in a $4.5 billion deal.

Pfizer was up 1.5 percent at $33.09 after a study showed that the drugmaker's arthritis drug was shown to be at least as safe as the widely used prescription-strength versions of painkillers ibuprofen and naproxen.

(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)