Bonds Fall, China Tanks, Greece Totters

The week started off with more warnings — this time from Fidelity and Jim Rogers. Monday, stocks rose in Asia 1.2%, in Europe 2.4%, and in the U.S. 0.8% on low volume. The VXO fell 13% to close at 12.21, and the 10-Year U.S Treasury Bond yield rose nearly 4% to close at 2.36% while gold slipped below $1200 per ounch, precious metals miners lost 1.5%, and the NASDAQ closed at another record high. The reason? No news on Greece other than one more day of liquidity injections given to satisfy bank runs.

Tuesday, stocks rose 1.1% in Asia and Europe but just slightly in the U.S. on low volume. The 10-Year U.S Treasury Bond yield rose 2% to close at 2.41% and the VXO rose 5% to close at 13.04. Wednesday, stocks changed little in Asia but fell 0.4% and 0.7% in Europe and the U.S. respectively on low moderate volume. This brought the Dow Jones indurstrial Average below the 18,000 level again. The 10-Year U.S Treasury Bond yield fell 2% to close at 2.37. Bad news regarding EU negotiations with Greece and a negative outlook from Carl Ichan put a damper on sentiment.

Thursday, stocks fell in Asia 0.5%, in Europe 0.3%, and in the U.S. slightly on low volume. Oil slipped just below the $60 per barrel level and the VXO shot up 8% to close at 14.48. Friday, stocks fell 1% in Asia as the Chinese stock marked crashed.

In Europe and the U.S. stocks changed little. Trading volume was high due to Russell Index stock re-balancing. As the U.S. markets closed, Tsipras in his latest foot-dragging antics called for a referendum past the latest debt deadline. We’ll now see if that deadline like all of the others will be moved out. Finally, the 10-Year U.S Treasury Bond jumped up another 3.5% to close at 2.48.

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