For the week, little changed in stocks or bonds with the notable exception of precious metals miners dropping about 5%.
Monday, stocks in Asia closed down slightly, in Europe down 0.3, and in the U.S. down 0.5%. Precious metals tumbled 3% and their miners about twice that amount. Here’s an article showing that gold prices have fallen below production cost. The 10-Year U.S. Treasury Bond yield rose 2% to close at 2.80% as the Fed Treasury Bond ownership reached one third of the total supply .
Tuesday, stocks in Asia fell slightly but in Europe they were down sharply, falling 1.5%. In the U.S. for whatever reason, the decline was rather benign. I’m getting the feeling that U.S. daily declines are not permitted to exceed about 0.5%. That was the magnitude of the decline of U.S. stocks Tuesday on low volume. It was enough to drop the S&P 500 Index and the Dow Jones Industrial Average below their most recent round-number levels.
Wednesday, stocks in Asia dropped 1.1%, following the lead from the West the previous day. Stocks in Europe continued the decline, dropping another 0.6%. In the U.S. though, stocks declined only slightly on low moderate volume. The 10-Year U.S. Treasury Bond yield rose 2% to close at 2.84% while the VXO moved up 4.5% to close at 13.37. Precious metals and their miners reversed sharply closing up 3%.
Thursday, stocks closed down in Asia 0.4%, in Europe 0.9%, and in the U.S. 0.5% on low moderate volume. (There’s that 0.5% number again.) The VXO rose over 6% to close at 14.24, while precious metals lost 1.5% and their miners about twice that. Friday, stocks in Asia closed flat. In Europe and the U.S. though the U.S. employment data supposedly cheered stock investors driving them up 0.8% and 1.1% respectively on very low volume. This gain kicked the S&P 500 Index and the Dow Jones Industrial Average above those round number levels again.