Stocks Bounce Back

Monday, stocks rose in Asia 0.5% and in Europe and the U.S. 1.2% on high volume. The VXO fell 19% to close at 21.09. Precious metals miners gained 3%. Here’s an opinion that central banks will not be baling out stocks this time.

Tuesday, stocks gained 0.9% in Asia, fell 0.6% in Europe but closed little changed in the U.S. on moderate volume as new Fed chair calmed market jitters with a conciliatory tone toward the Fed’s role regarding the stock market.

Wednesday, stocks rose 0.7% in Asia, 1% in Europe, and 1.4% in the U.S. on strong volume. The VXO tumbled 14% to close at 17.55. Precious metals moved up 2% and their miners gained twice that amount as the CPI report indicated an uptick in price inflation. The 10-Year U.S. Treasury Bond yield rose 3%, to close at 2.91. Bond traders seemed to understand what stock “investors” missed.

Thursday, stocks rose 2.1% in Asia, 0.4% in Europe, and 0.6% in the U.S. on strong volume. Major stock indices retook la-la land benchmarks of 25,000 and 2700 for the Dow and S&P respectively on the back of strong gains in Apple. Friday, stocks in Asia climbed 0.3% and in Europe 1.1% but in the U.S. they were little changed on strong volume. Precious metals miners shed 2%.

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