Monday, stocks plummeted in Asia 5%, Europe 5.4%, and in the U.S. 4% on high volume. While precious metals held their own,, their miners crashed nearly 9%. The 10-Year U.S Treasury Bond yield moved 3% lower to close at 2.0% while crude oil fell nearly 6% to close at 38.13. Fear continued to ramp up as the VXO skyrocketed 33% to close at 37.66. The NYSE Composite average shot down through the 10,000 mark. IBM closed way below 150 at 143.47, and the Dow, S&P, and NASDAQ closed below 16,000, 1900, and 4600 respectively.
Tuesday, stocks in Asia closed nearly unchanged, while those in Europe actually rose slightly. In the U.S. stocks moved in a volatile trajectory — starting out the day up 4% only to close down 1% on high volume. Precious metals miners fell about 3% and the 10-Year U.S Treasury Bond yield moved 3% higher to close at 2.13%.
Wednesday, stocks in Asia gained 0.7% as the PBOC intervened with another injection of liquidity. In Europe stocks fell 1.9%. In the U.S., the big news came from a Q&A session from Federal Reserve Bank of New York President William Dudley where he diminished the odds of a September rate hike.
This contributed to the 3% ramp in U.S. stock prices on high volume. The big rise in stocks served to lift the Dow, S&P, and NASDAQ back above the 16,000, 1900, and 4600 levels respectively. The 10-Year U.S Treasury Bond yield moved 2% higher to close at 2.17%. The VXO collapsed 22% to close at 22.35. Precious metals dropped over 1% while their miners crashed 5%.
Thursday, stocks rose worldwide — in Asia 1%, in Europe 3.8%, and in the U.S. 2.5% on strong but not high volume. The VXO fell 8% to close at 26.15 and crude oil rose 1% to close at 43.05. Precious metals miners closed up about 5% for the day. Here’s an article that confirms that China has been selling a massive amount of U.S. Treasury Bonds.
Friday, stocks moved up in Asia 1.1%, and in Europe 0.3%. In the U.S. stocks moved little on moderate volume. Oil shot up over 6% to close at 45.24. Precious metals rose two percent and their miners rose about twice that amount. The NYSE Composite average rose back above the 10,000 mark. For the week, stocks changed little and the VXO fear index fell 8%.