Still in Denial

Monday, markets were closed in the U.S. for Memorial Day. They might as well have been closed everywhere; because markets changed little around the world. Tuesday, stocks fell slightly in Asia, 0.8% in Europe, and 1.2% in the U.S. on low moderate volume. All three major indices managed to close above their recent benchmark levels while gold dropped below it’s key level. Precious metals fell about 2% and their miners about twice that amount. The VXO rose 14% to close at 14.36 and the 10-Year U.S Treasury Bond yield slid 4% to close at 2.14%.

Wednesday, stocks fell 1% in Asia, but rose 1.3% in Europe, and 0.7% in the U.S. on low volume. The VXO dropped 9% to close at 13.12. Despite the big move in stocks, bonds stayed put. Thursday, stocks fell 0.6% in Asia and 0.5% in Europe. In the U.S., they moved little on low volume. The 10-Year U.S Treasury Bond yield fell 2% to close at 2.13.

Friday, stocks in Asia rose 0.3%, plummeted in Europe 1.8%, and fell in the U.S. 0.7% on strong moderate volume. The VXO rose 6% to close at 14.46 and crude oil shot up over 4% to close above $61 per barrel. The big news of the day came from the government lying statistics front as GDP was adjusted again to reveal a dismal number. For the week, stocks actually fell over 1%.

 

Leave a Reply

Your email address will not be published. Required fields are marked *