Stocks Stand Their Ground

Monday, stocks closed little changed in Asia and fell 0.3% in Europe. Markets were closed in the U.S. for Memorial Day. Tuesday, stocks fell 0.6% in Asia, 1.3% in Europe, and 1.5% in the U.S. on strong volume. The VXO rose 23% to close at 15.61. The 10-Year U.S. Treasury Bond yield plummeted 6% to end at 2.77. The catalyst for the bearish move came from the bond market in Italy.

Wednesday, stocks fell 1.3% in Asia, gained slightly in Europe, and rose 1.5% in the U.S. on moderate volume. The VXO fell 12% to close at 13.56. U.S. Treasury Bond yield gained 3% to end at 2.84. Thursday, stocks in Asia closed up 0.9%, in Europe down 0.7, and in the U.S. down 0.8% on high volume. One of the main market movers came from President Trump’s new tariffs on steel and aluminum on imports from Canada, Mexico, and Europe.

Friday, before western markets opened, the Bank of Japan indicated a small tightening of its bond buying initiative. Despite that, stocks rose worldwide — in Asia slightly, in Europe 1%, and in the U.S. 0.8% on strong volume. The 10-Year U.S. Treasury Bond yield moved up 3% to close at 2.89 in response to another positive jobs report.

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