Election Surprise Sends Dollar Soaring

Monday, stocks gained 0.6% in Asia, 1.7% in Europe, and 2.1% in the U.S. on light volume as the FBI again cleared Hillary Clinton of unlawful conduct.  The VXO plummeted 21% to close at 19.33 bringing it back below the 20 level. The Dow and S&P blasted above their respective benchmarks. The 10-Year U.S. Treasury Bond yield rose 3% to close at 1.83. Precious metals lost 2% and their miners gave up twice that amount.

Tuesday, election day, stocks gained 1.5% in Asia, and 0.3% in both Europe and the U.S. on light volume. The 10-Year U.S. Treasury Bond yield rose 2% to close at 1.86. Wednesday, stocks nosedived 2.8% in Asia, rose 1.6% in Europe, and rose 1.1% in the U.S. on moderate volume. Despite extreme volatility in stocks as the news of a new U.S. president hit the wires early in the morning, the VXO swooned 24% lower to close at 14.28. The 10-Year U.S. Treasury Bond yield skyrocketed 11% to end the session at 2.07% while precious metals miners gained 2%. It was a tough day for bonds.

Thursday, stocks blasted 2.4% higher in Asia, fell 0.3% in Europe, and rose 0.5% in the U.S. on moderate volume. The VXO rose 6% to close at 15.11. The Dow Jones Industrial Average closed at a record high thanks in part to a 3.5% rise of IBM to close up over 160 again. At least part of that related to Trump’s idea to charge only 10% tax for companies to bring their money back into the U.S. On the other hand, the 10-Year U.S. Treasury Bond yield rose 2% to close at 2.12% while precious metals fell 2% and their miners crashed 8%. Investors seem to anticipate the impact of a Trump presidency would bolster the dollar in relation to foreign currencies.

Friday, stocks fell 0.3% in Asia and 0.6% in Europe. The U.S. stock market was closed in observance of Veterans Day.

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