Saturday afternoon we learned that our esteemed leader decided for a change to obey the U.S. Constitution that he pledged by oath to uphold and seek authorization from Congress before engaging in war with Syria. Monday, stocks in Asia rallied up 1% and in Europe 1.8%. Happy days are here again! U.S. markets were closed for Labor Day.
Tuesday, stocks in Asia rose another 1%, fell 0.4% in Europe, and rose 0.7% in the U.S. on low volume. The 10-Year U.S. Treasury Bond yield moved up sharply to close at 2.85% while precious metals rose about 2%. Wednesday, the drumbeat of war sounded louder as odds rose that Congress would authorize the President to go to war with Syria. Stocks in Asia were unchanged, while in Europe they rose slightly. In the U.S. stocks gained 0.7% on low volume. The VXO plunged nearly 6% to close at 15.57. Precious metals lost nearly 2%, and the 10-Year U.S. Treasury Bond yield moved up a similar amount to close at 2.9%.
Thursday in Asia stocks rose 0.3% and in Europe 0.7% as the ECB and BOE each left their rates and plans unchanged. In the U.S., stocks moved up slightly on very low volume. The real action was in bonds and precious metals. Continuing Wednesday’s trend, Precious metals lost over 2%, and the 10-Year U.S. Treasury Bond yield again moved up a similar amount to close at 2.98%. Friday in Asia stocks again rose 0.3 and in Europe they gained 0.5%. In the U.S. stocks gained slightly on low volume. For the week though, stocks were up 1.4%.