Dollar Soars

Monday, stocks in Asia fell 1.4%, in Europe fell slightly, and in the U.S. rose slightly on low volume. While oil re-gained the $50 per barrel mark, precious metals miners tumbled more than 3%. Tuesday, stocks fell sharply around the world. Losses in Asia, Europe, and the U.S. were 1.1%, 1%, and 1.7% respectively on low volume. Fear was creeping back in as the VXO shot up nearly 18% to close at 17.25. Dollar strength and stock weakness helped the 10-Year U.S. Treasury bond yield decline over 3% to close at 2.13%. Dollar strength continued to pressure precious metals and their miners.

Wednesday, stocks fell 0.4% in Asia, rose 1.5% in Europe, and was virtually unchanged in the U.S. on low moderate volume. The story of the day was again the strong dollar and weak euro with talk about the euro approaching parity with the dollar. Despite the strong dollar, precious metals miners recovered 3% on the day.

Thursday, stocks rose in Asia 1.2%, closed nearly unchanged in Europe, and gained 1.3% in the U.S. on low moderate volume. The VXO powered upward nearly 10% to close just under 16. Friday, stocks closed nearly unchanged in Asia, rose 0.3% in Europe, and fell 0.6% in the U.S. on low moderate volume. The VXO rose almost 6% to close at 16.88. The dollar continued to climb and crude oil fell to $45 per barrel.