Monday, stocks rose 0.5% in Asia and Europe as the results from the election in Ukraine seemed to reduce the prospects for further conflict. Markets were closed in the U.K. and the U.S. for Memorial Day. Tuesday, stocks in Asia changed little, and in Europe they rose slightly. In case you haven’t figured out who or what is bidding stocks ever higher (hint: it’s credit), here’s one clue. In the U.S., the relentless ramp upward continued with another up Tuesday. The gain was 0.4% on low volume. That put the S&P 500 Index to a new closing high. The VXO dropped another 2% to settle at the unsustainable, giddy level of 10.78 while precious metals dropped 2% and and their miners lost about twice that amount.
Wednesday, stocks in Asia rose slightly, changed little in Europe, and slid slightly on very low volume in the U.S., precious metals dropped another 1% and their miners fell about twice that amount. The 10-Year U.S Treasury Bond yield continued its persistent slide, tacking on another 3% drop to close well below the 2.50 level at 2.44. In Asia Thursday, stocks rose 0.3%. GDP dropped significantly in the first quarter despite fudging. In Europe, stocks changed little, but in the U.S. they powered upward another 0.5% on abysmal volume.
Friday in Asia, Europe, and the U.S. stocks remained at near the previous close. Still, the action was enough to bring the S&P 500 Index to a new all-time closing high and leave the VXO down at 10.56. For the week, stocks rose 1.2%, while precious metals and their miners lost about 4%. For the month, stocks rose about 2% while precious metals fell 3.5% and their miners tumbled about twice that amount.