US pre-open: Markets set to rise after Fed hike

US stock futures were up on Thursday, following the decision from the Federal Reserve to hike interest rates.

The Dow Jones Industrial Average is expected to open up around 62 points, while the S&P 500 and the Nasdaq are both set to begin the session seven and 24 points higher respectively.

The economic calendar seems rather bare compared to the excitement of Wednesday’s announcements, with the third quarter current account balance due at 1330 GMT, as well as initial jobless claims.

The Philly Fed survey on manufacturing business conditions for December will also be released at the same time.

Asia rallies after landmark Fed decision

Elsewhere, effects of the US Federal Reserve's landmark decision were rebounding all over the Asian markets on Thursday, with major indices in the region showing a renewed confidence in the global outlook.

Late on Wednesday, Fed chair Janet Yellen lifted the central bank's target interest rate range to between 0.25% and 0.5%, ending nine years of near-zero conditions.

It ended months of speculation in the Asian markets, which have seen investors keep their cash amid fears of higher borrowing costs.

This was especially true for firms in emerging markets, which tend to have high volumes of USD debt.

Southeast Asia in general had been underperforming in recent months.

Stocks in countries such as Thailand and Indonesia were down more than 10% this year, and a stronger US dollar weakened emerging market currencies - the Malaysian ringgit was already down 23% in the year to date.

But investors in the region appeared pleased with the Fed's management and communication of this rise.

"The Fed has been very clear in communicating its thinking and the markets clearly appreciated that", said Colonial First State senior investment analyst James White.

The focus was now expected to shift from uncertainty around the Fed, to the programme of rates rises going forward.

The Fed had very clearly signalled any rises would be gradual and well-communicated.

When coupled with the stabilising, albeit weaker, growth numbers out of China, things were looking more positive for Southeast Asia next year.

The Federal Reserve was "aware of the risks if they move too quickly. That's the message that investors are focusing on", said Steve Friedman of BNP Paribas in New York.

The latest CME poll showed a 55% probability of another rise from the Fed in April.

European stocks also were bolstered by the Fed, while oil prices were mixed. West Texas Intermediate crude dropped 0.23% to $35.44 a barrel, while Brent crude was up 0.78% to $37.68 a barrel.

The dollar was up against all the main currencies, gaining 0.6% and 0.5% on the euro and the pound respectively, and gaining 0.25% against the yen, while spot gold fell 0.57% to $1,066.18.

In company news, investors will be keeping an eye on AstraZeneca’s US shares after it announced it will acquire a 55% stake in Acerta Pharma over its oncology treatment – a deal valued at $4bn (£2.7bn).

Meanwhile traders wait for news from KaloBios after it plunged 50% ahead of the opening bell. Trading on the stock was halted pending a request for information from Nasdaq.