Monday, in Asia stocks closed down 0.8%. In Europe, they closed up slightly while in the U.S., they gained 0.3% on moderate volume. The 10-Year U.S. Treasury Bond yield rose 5% to close at 2.22%. Precious metals lost 5% and their miners gained 2%. IBM fell 2% to close well below 160 at 158.21.
Tuesday, stocks rose in Asia slightly, in Europe 0.3%, and in the U.S. 0.6% on moderate volume. The VXO fell 8% to close at 13.25. Precious metals gained 1% and their miners shot up 4%.
Wednesday, stocks in Asia closed unchanged. European stocks fell slightly. In the U.S., stocks dropped 0.4% on light volume.
Thursday was an up day for stocks as Janet Yellen delivered a near promise for a December 2016 rate hike. Asia rose 0.3%, Europe 0.7, and the U.S. 0.4% on light volume. Friday, stocks fell 0.5% in Asia and in Europe and declined slightly in the U.S. on low volume. The 10-Year U.S. Treasury Bond yield rose 3% to close at 2.35%. Precious metals and their miners lost 1%. As a sure indicator that stocks are overbought, IBM slithered to close again above 160 as major indices continued to slosh around near record highs.
Clearly, we’re seeing investors reposition to account for changes coming by President-Elect Trump. As interest rates move toward reality, can stocks be soon to follow? I hope so.