Monday, stocks moved little in Asia, gained 0.6% in Europe, and fell 0.7% on low moderate volume. The VXO shot up about 10% closing at 17.85 while precious metals miners tacked on another 4% to the to previous week’s gains. Finally, the 10-Year U.S Treasury Bond yield fell 3% to close at 1.91%.
Tuesday, stocks rose in Asia 0.3% and 1.4% in Europe but fell slightly in the U.S. on low moderate volume after having been much higher through most of the session. The VXO rose another 6% to close at 18.97. Alcoa started the earnings season with dismal GAAP numbers but glowing non-GAAP numbers. Even this giddy market saw through the scam and sold the stock accordingly while precious metals miners gave up the gains from the previous day.
Wednesday, stocks fell in Asia 0.5%, in Europe 1.6%, and in the U.S. 0.5% on moderate volume. The VXO rose another 5% to close at 19.96 and the 10-Year U.S Treasury Bond yield fell 3% to close at 1.84%. While the S&P 500 Index dropped below 2000 during the day, it recovered enough to close above it.
Thursday, stocks rose in Asia 1.1% and in Europe 2.9%. The Swiss National Bank sent shock waves through investment-land as they pulled the Swiss Franc peg to the euro. In the U.S., stocks fell 0.5% on low moderate volume dragging the S&P 500 Index to a sub-2000 close. The VXO rose 8% to close at 21.56. A close above 20 is significant. The 10-Year U.S Treasury Bond yield tumbled 3.4% to close at 1.78%.
Friday, stocks fell in Asia 0.5% but rose in Europe 1% and rose in the U.S. 1.4% on weak volume for an options expiration day. The VXO down 9% to close the week at 19.70. Precious metals miners rose another 3% to cap off a strong week gaining nearly 8%. These miners are already up 22% year to date with the daily 3% gain. Silver in particular had a strong day rising 4% to close at $17.83 per ounce.
Here’s an article that speculates on reasons for the Swiss National Bank giving up on pegging their currency to the euro. The last few days has been a battle to keep the S&P 500 Index above 2000. Despite the Swiss surprise, and a weekly decline of 1.4% the index did manage to close the week above that benchmark.