Yellen wants gradual rise in US rates

US indexes edge higher as banks and technology stocks rise

Small companies make biggest gains as US stocks rise

Fed Chair Janet Yellen says that the Fed may have misjudged inflation.

The Dow Jones Industrial Average edged down 0.1% to 22,284.32.

The Euro-to-Dollar rate pared a 0.68% loss overhanging from the London session to trade just 0.52% down at 1.1794.

The Federal Reserve is on track to gradually raise interest rates given the recent inflation weakness is fading and the US economy's fundamentals are sound, an influential Fed policymaker said on Monday, reinforcing the central bank's confident tone. Thus, without further modest increases in the federal funds rate over time, there is a risk that the labor market could eventually become overheated, potentially creating an inflationary problem down the road that might be hard to overcome without triggering a recession. But such disturbances are not a great concern from a policy perspective because their effects fade away as long as inflation expectations remain anchored.

In his first public remarks as a central banker, Atlanta Fed President Raphael Bostic said he is inclined to support another rate rise by the close of the year.

Thousands flee as Bali braces for volcanic eruption
The government's humanitarian assistance plan will see the distribution of hundreds of thousands of face masks . It's been more than 50 years since Agung's last eruption , which continued for nearly a year.

Markets are pricing in a 76 percent chance the Fed will raise borrowing costs in December, compared with less than 20 percent only a month ago. Case-Shiller's national index rose 5.9%, up from 5.8%. The global business research group reported consumers' views about the strength of the USA labor market have weakened and home sales have dropped to an eight-month low due to Hurricanes Harvey and Irma in the states of Texas and Florida.

Extreme short bets against the greenback has been one of the most crowded trades in the currency markets this year as investors have been disappointed by the progress on fiscal reforms and the slow pace of increase in USA interest rates.

In her comments on Tuesday, Federal Reserve Chair Janet Yellen discussed the need to continue with interest rate hikes despite uncertainty about the path of inflation, a sentiment which sent the dollar higher against its major trading partners.

Seoul shares ended lower amid selling by foreign investors as tensions between North Korea and the United States persisted. Hong Kong's Hang Seng index rose 0.5 percent to 27,662.57.

The US dollar has built added to September's modest gains with another 1.3% rally this week, breaking the downtrend channel in place since the April highs.

US Supreme Court cancels arguments on previous Trump travel ban
In addition, he said that the list was created to advance foreign policy, national security and counterterrorism objectives. Last week, Kim called Trump a "mentally deranged US dotard" in response to Trump's threats to "totally destroy" the North .

And, in other positive news for U.S. investors, the price of West Texas Intermediate (WTI) oil rose late Tuesday, on news that USA oil stock piles have fallen in recent weeks.

-Spanish Prime Minister Mariano Rajoy will meet U.S. President Donald Trump in Washington Tuesday while his team back in Madrid attempts to turn the screws on a secessionist push in Catalonia. Prices on Monday surged 3.1%, with the $52.22 settlement the highest since mid-April. ICE Brent crude for November settlement fell 87 cents, or 1.5%, to $58.15 a barrel.

WALL STREET: U.S. stock indexes finished barely higher on Tuesday. An increase for crude supplies would follow three-consecutive weekly increases reported by the EIA, as Hurricane Harvey disrupted USA refinery operations, reducing demand for crude oil.

On Wednesday, investors will receive several economic reports, including the weekly MBA Mortgage Applications Index at 7:00 ET, August Durable Goods Orders (consensus +0.7%) at 8:30 ET, and August Pending Home Sales (consensus -0.4%) at 10:00 ET.

Paul Ince predicts the outcome of Arsenal vs West Brom
The Gunners did very well at Chelsea , they should be proud of the way they played and the way they worked hard for each other. Albion midfielder Gareth Barry will break the Premier League appearance record if he features against Arsenal .

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