Stories. We begin with the elections in taiwan. The president won a landslide majority, seen as a rejection of beijings push for one country, two systems. Joining me from taipei is stephen engle. Walk us through the significance of the vote over the weekend. Stephen it was quite significant. Now that she has that landslide victory and the mandate for another four years, theres three big questions. How will china handle another four years of a thorn in their side, the policies of taiwan and her proindependence minded policies that really resonated with the electorate . More than 8 million votes, a record here in taiwan. The hong kong protests really resonated with the electorate, of ahat led to a rebuffing push for closer economic ties. The question is what is the future of the Opposition Party that got routed . Theyve lost four of the last six president ial elections, and they need a you voice for the longer eat for the younger electorate. Finally, the economy. Tot also propelled tsai
And currencies ahead of europes close. Speaking of m a, a massive deal in tech. Why cisco bought splunk and what it might mean for more m a in that space. Topping the tape, higher for longer. Are stocks setting up for a test of the august lows . Senior markets commentator mike santoli is with us. Does feel like stocks are playing a catchup to bonds, which were ahead on the higher for longer. To a degree, yeah. Were sort of arguably in that test thats under way. The s p 500 about 0. 50 where it bottomed out in midaugust. Its also the lower quarter ep end of stocks are waiting to see if longer term treasury yields were, perhaps, topping out around those october highs. Now weave clearly broken higher. What happened with the fed yesterday, even in broad strokes, as weve been saying, not a radical change. Theyre done or near done. Any moves come slowly, theyll be careful. They did remove those potential rate cuts, however anything longer than six months is all kind of hazy on the horizon. W
The region. The marketscheck of about 30 minutes into the last trading day of 2017. Abigail doolittle is here. Little movement so far. Abigail fractional moves for the major averages on the last trading day of 2017. Sherry was just mentioning, very consistent with what we have been seeing all week, heading into the new year holiday, a long holiday weekend. Toders taking the day off some extent, week off even. The s p 500 up about 20 on the year. Best year since 2013. A bit of a break for the major averages. We have weekly gains except for the nasdaq. The nasdaq taking a bit of a best yearbreak on the week, wity small decline. Dragging down the day, we have technology. Micron allon, and lower. Apple, there is news they are apologizing for slowing the speeds on some of their phones. They are reducing prices for batteries. On the year, all of these stocks up in a big way. Apple, year to date, its best year since 2010. This could be traders and investors not wanting to rock the boat. One o
Off consumer stock Britains Civil Aviation Authority says it will take action against ryanair for misleading passengers as the airline extends Flight Cancellations into next year it says it will also meet with regulators good morning Global Markets are buzzing around that trump tax plan we have seen optimism in stocks. This morning stoxx 600 is off a bit. We are just hovering around break even there was the expectation of a steeper yield curve. This morning the ftse 100 off by 0. 3 the xetra dax up 0. 2 the cac 40 holding on to the flat line. When it comes to the sectors, you have banks still outperforming. This is the trumpflation reflation trade i was talking about. Technology, Construction Material doing well. Retail is the key underperformer off by 1 given the bad news from h m, slowing sales, they had to cut prices as they had to sell off the summer stock. You can see those shares slumping in swedish trade. Lets get back to our top story, the Republican Party unveiled plans for an
Just under 30 minutes until the end of the session. The high, the bull market we entered yesterday stuttering, or is it sputtering . The lefthand column are the european equities, down by 2 3 of 1 . All those currencies rising against the dollar. Weve got a mixed bag in the bond market, the greek 10 year yield is lower. Commodities and credit default swaps are the final two. You know im a bit of a whichcal analysis nerd, is why i love this chart, the euro stocks 50. From what weve seen in the last 14 days, according to the relative strength index, weve seen the euro area stocks are overboard. Running, the euro stocks 50 has been about 70 and above. 30 and below is over. That is the longest run in overbought territory since 1999. The euro stocks 50 is one of the stocks 500. Is. A wonderful sure that continuing to go from strength to strength. Highest level since 2013. Core inflation is important. Inching up to. 9 . It is barely off its lows,. 6 last year. Inflation creeping up, this wil