The stock market in China continued its descent from the stratosphere and the people in Greece lined up for bread money at their local banks. While the U.S. celebrated, much of the rest of the world braced for more pain. You may notice these events that freeze up financial markets more often than not happen on weekends more when markets are closed. The Greek decision to default roiled the markets Monday worldwide. Stocks in China crashed.
Stocks in Asia, Europe, and the U.S. fell sharply 2.2%, 2.8%, and 2.3% respectively on low moderate volume. Both the NASDAQ and S&P 500 indexes plunged below their recent benchmark levels as the Dow lost 350 points and the NASDAQ lost 120. . The VXO rocketed up 30% to close at 19.05, and the 10-Year U.S Treasury Bond yield plummeted 6% to close at 2.33%. Crude oil slid 2%.
Tuesday, Greece will default on its debt to the IMF, the Greek banks are closed, and the Greek stock market will not open until next week — no big deal. Don’t worry. Be happy. Stocks in Asia rose 0.8% as China pledged as much as 30% of its pension fund to pump up the bursting bubble that is its stock market. In Europe, things were a bit more rational with stocks declining 1.3%. In the U.S. they closed nearly unchanged. Volume picked up to moderate perhaps due to end of the month, end of the quarter, half-year re-balancing and window dressing.
Wednesday, stocks closed nearly unchanged in Asia but up big in Europe — rising 1.6%. In the U.S. they gained 0.5% on low moderate volume. This was enough to push the NASDAQ back above the 5000 mark at the end of the trading day. 10-Year U.S Treasury Bond yield shot up 4% to close at 2.42%. Crude oil rose 2% and the VXO fell 7% to drop just below 17.
Thursday, stocks rose slightly in Asia, fell 0.4% in Europe, and were nearly unchanged in the U.S. on low volume while oil fell to just under 57. Friday, stocks in Asia ended the day nearly unchanged. In Europe they were off 0.6. The U.S. markets were closed for Independence Day. Oil slid another 2.5% to close at 55.58.