Made on thursday. Welcome to daybreak asia. Im paul allen. Im betty liu in new york. Story in thejor markets. In the very early morning, leading up to the meeting and digesting everything janet yellen was saying. He bump up in growth. This forecast and Economic Growth here. The job market is still continuing to kind of slug along percenting that three forecast for 2018. A lot of scratching the heads as well. We have strong broad jobs growth. And theres Janet Yellens legacy to think about as well. I have a wonderful piece of trivia for you here. Finalll have the lowest Unemployment Rate of any fed chair since William Martin of 1970. We can have a newfound knowledge of said history. Fed history. I found that out from someone else, by the way. Weve been trading for a couple hours now. Slightly weaker, up. 2 , the kiwi dollar breaking above . 70. Trading in australia just getting underway. It is difficult to get a gauge on how the asx is performing because we have the staggered open here.
And others get ready for a new voice in the crowd as samsung prepares a new speaker. Betty good morning. Here in the markets in the u. S. , it is really the tax reform, the last minute zynga coming up from marco rubio. That dragged down u. S. Stocks. But overall it looks like central bankers are trying what we are calling dovish tightening. They are trying to move the ball forward with Interest Rates without disrupting. Mario draghi of the ecb trying to thread that line today. Paul grappling the same old problems the world developed, in terms of inflation. 7 in 2020 point does not sound terribly optimistic, does it . Betty no. No, it doesnt. Perhaps that is why markets took all of that in stride. Lets quickly pull up where the u. S. Markets ended up today. We were lower, taxes a main focus for investors. The s p down 0. 4 . Anddow lower by 77 points, tech shares, as well. Most of the major s p groups were in the red, except Consumer Discretionary stocks. A slower day in asia for you .
Much bigger problem. Hello and welcome to daybreak asia. Im in haidi lun. In newim betty liu york. Some investors here watching the and saying is that a ticking time bomb that eventually will go so high that it only has one direction which is down. And big correction. So far, so good. I want to pull up a chart here. What is so fascinating, the vertical lines that you see represent days when all three indexes, the s p, nasdaq and dow, reached records. Take a look at how many of those days we have had in just the last four months of this year. We kind of took a break in the middle, and big gap but look at this as we continue to head towards the end of 2017. No doubt a big santa claus rally, right . Haidi absolutely. You look at that. I know we get the occasional pullback but for the large part it is defying gravity. It feels with the momentum building intoit feels with the m building into tax, we will get something before christmas, that we are squeezing everything out of visible run bef
Economic houses in place. Theres seeing property is the biggest threat. You may have seen a glimpse of what is to come in 2018 and the treasuries market with that yields surge we saw today. A lot of nervous investors around how much the yield curve has flattened in the face of more positive economic data. I want to bring up this chart really quickly, which shows how much a yield curve has flattened. It is headed toward that in version, usually points to an imminent recession most times. We heard dow fed president fred kaplan say thats usually the ase, how you determine flattening inverted yield curve, and why this time would be any different. That has a lot of investors nervous, are we going to see some sort of tantrum in the bond market . That would be quite shocking to the market. It has been interesting, too, what weve seen overnight, not just the 10year come the 30year. Reform . Signal of tax could we see some type of Economic Growth, or are we going to reach your end and see this
And amazon tops 1000. Stocks up 50 and on course for a 1 trillion sale tag. 1 trillion in sales. Yvonne a trillion dollar company, yvonne. Speaking of trillions, we saw on interesting reaction in the bond markets. Again, another day where yields the house and Senate Finally passed a tax reform package. Theaps all of this by on rumor in salem the news is affecting not only equities, but also the bond markets as well. Yvonne yes. Callsall of the extreme for yield curves to flatten, it seems like we are pushing back on that now. We are seeing a steepening here as we close 2017, betty. Reaction in the equity markets. Kind of a collective shrug. S p trading flat, and closing unchanged. Same with the nasdaq. The dow down about 30 points. Not setting up for a really recession. Of course we are waiting for the boj. Yvonne we saw a bit of a rally that petered out on wall street. Here is how we are. So on to new asia, zealand. A gross load in the third but a healthier picture than what economist