Monday, stocks in Asia fell 1.1% as the third-quarter Japanese GDP tumbled over 7%, confirming Japan had entered a recession. The Nikkei dropped 3% to close below 17,000. Despite that depressing news, stocks in Europe rose 0.5% on ECB jawboning. In the U.S., stocks moved little on low volume, but precious metals miners did manage a bit of a gain. Perversely, the S&P 500 Index still closed at another all-time high.
Tuesday, stocks rose in Asia slightly, but the Nikkei regained most of its big loss from the day before to blast far above the 17,000 level again. The catalyst was more hope for free money in the form of QE, government welfare, and postponed taxes. Joining the free-money celebration, stocks rose 0.6% in Europe and 0.5% in the U.S. on low volume. Ho-hum. Another day brought another all-time high for the major stock indices. Precious metals miners had a good day rising about 4%, while crude oil continued its slippery slide to end the day below $75 per barrel.
Wednesday, stocks in Asia fell 0.7%, but in Europe and in the U.S. they closed nearly unchanged on low volume. Volatility ramped up 5% leaving the VXO ending the day at 13.29. Precious metals miners plummeted over 5% as the minutes from the most recent FOMC meeting hit the wires. Thursday, stocks fell 0.4% in Asia and 0.3% in Europe but in the U.S., they changed little on low volume. Precious metals miners gained about 3%.
Friday, stocks rose 0.4% in Asia as the prime minister of Japan dissolved the lower house of parliament to prepare for a referendum relating to his economic policies. The PBOC lowered interest rates 0.4% and Draghi reiterated his resolve to greater monetary accommodation. That ignited stocks in Europe to rise 2.1%. These events also lifted U.S. stocks 0.8% and sent the VXO tumbling over 6% to 11.24 on low volume for an options expiration day. Of course, that meant another set of record high closes for the major U.S. indices.
For the week, stocks rose 1.2% in the U.S. and precious metals miners rose about 5%. The Keynesian fantasy continues to propagate its venom as governments and central bankers collude desperately to keep it alive.