Monday, stocks rose 1.2% in Asia and 0.7% in Europe while they paused in the U.S. on light volume as investors waited with bated breath for what the FOMC might say or do just two days hence. Precious metals and their miners lost about 3%. Tuesday, stocks fell 0.9% in Asia, 1.1% in Europe, and 0.8% in the U.S. on light volume.
Wednesday, stocks fell 0.4% in Asia, rose slightly in Europe, and rose 0.7% in the U.S. on light volume as the FOMC backed off from its rate hike projections. Precious metals gained 3.5% while their miners rose 7%. Thursday, stocks ramped up 1.9% in Asia, changed little in Europe, and gained 1.1% in the U.S. on moderate volume. Crude oil shot up 4% to close over 41.50, while the 10-Year U.S. Treasury Bond yield rose 2% to close at 1.90.
From the Pure as the Driven Snow Department, we learn that J.P. Morgan will be buying back some of its stock. And for those who haven’t noticed, turkey stock IBM has risen over 25% in less than six weeks on the back of buybacks. If you’re looking for a reason for this current bogus rally, you have your answer. Friday, stocks closed nearly unchanged in Asia, moved up slightly in Europe, and ticked up 0.3% in the U.S. on strong volume as options expired. The 10-Year U.S. Treasury Bond yield fell 2% to close at 1.87.