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Dow has best week since 2011, other markets falter

The Dow ended with a new record after its biggest weekly gain since 2011, but other markets faltered on fears US president-elect Donald Trump’s spending policies will fire inflation.

With trade lightened by the Veterans Day holiday, the Dow edged up 0.2 percent to a new record at 18,847.66, scoring its best week in five years.

The Nasdaq rebounded after Thursday’s tech selloff, gaining 0.5 percent at 5,237.11.

But the S&P 500 sagged under the weight of losses in the energy sector due to another sharp drop in crude oil prices. The broad-based index lost 0.1 percent at 2,164.45.

“For the most part, investors took the day off today in honor of Veterans Day,” said Jack Ablin of BMO Private Bank.

“Oil came down some… But with the bond market closed, it’s hard to really do much equity trading. So I wouldn’t take any of these moves today as any indication of a trend.”

– Asia, Europe Cautious –

Despite an all-time high close on Wall Street Thursday, investors across Asia and most of Europe turned cautious on uncertainties linked to a Trump presidency.

After the initial shock of Trump’s win, global equities rocketed up Wednesday and rose further Thursday, with investors hoping for business-friendly policies and measures to boost the US economy, a key driver of world growth.

However, there are also worries about his plans after he said he would tear up several trade deals and impose steep tariffs on China and Mexico.

“It’s been a Trumper-thumper of a couple of days in markets,” CMC Markets analyst Jasper Lawler wrote in a note to clients.

“The Trump dump was quickly followed by the Trump jump and now it seems we’re headed into the Trump slump.”

Expectations that real estate billionaire’s plans for huge spending projects will fan prices have lit a fire under the dollar as dealers bet the Federal Reserve eventually will have to hike borrowing costs more aggressively to cap inflation.

The greenback almost hit 107 yen on Thursday for the first time since July, but retraced some of the increases into the weekend.

The dollar meanwhile hit a new all-time high against the Mexican currency at just under 21.83 pesos.

The peso and Mexico’s stock market have been hammered by fears Trump will follow through on campaign pledges to renegotiate the North American Free Trade Agreement, as well as pressure the country to pay billions of dollars for a giant border wall.

– Key figures around 1630 GMT –

New York – Dow: UP 0.2 percent at 18,847.66 (close)

New York – S&P: DOWN 0.1 percent to 2,164.45 (close)

New York – NASDAQ: UP 0.5 percent to 5,237.11 (close)

London – FTSE 100: DOWN 1.4 percent at 6,730.43 (close)

Frankfurt – DAX 30: UP 0.4 percent at 10,667.95 (close)

Paris – CAC 40: DOWN 0.9 percent at 4,489.27 (close)

EURO STOXX 50: DOWN 0.9 percent at 3,020.02 (close)

Tokyo – Nikkei 225: UP 0.2 percent at 17,374.79 (close)

Hong Kong – Hang Seng: DOWN 1.4 percent at 22,531.09 (close)

Shanghai – Composite: UP 0.8 percent at 3,196.04 (close)

Dollar/yen: DOWN at 106.67 yen from 106.84 yen Thursday

Euro/dollar: DOWN to $108.59 from $1.0895

Pound/dollar: UP to $1.2605 from $1.2552

Dollar/Mexican peso: UP to 20.83 pesos from 19.63 pesos

Oil – West Texas Intermediate: DOWN $1.25 at $43.41 per barrel

Oil – Brent North Sea: DOWN $1.09 at $44.75

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