FOMC Reduces Rates

Monday, stocks in Asia fell 0.3% and Europe fell 0.6%. In the U.S. they closed little changed on moderate volume. The VXO moved up 6% to close at 14.86. The 10-Year U.S. Treasury bond rate fell back 3% to close at 1.84. Precious metals rose 1% while their miners gained about three times that amount. The big news of the day was the bombing of Saudi oil facilities. Crude oil prices moved up between 10% and 20% during the day.

Tuesday, stocks fell 0.6% in Asia, closed unchanged in Europe, and moved up slightly in the U.S. on moderate volume. The 10-Year U.S. Treasury bond rate dropped 2% to close at 1.82. Precious metals miners fell 3%.

Wednesday, stocks closed unchanged around the world on light volume. The FOMC elected to lower interest rates 0.25%.
Precious metals fell 1% and their miners declined twice that amount.

Thursday, stocks fell slightly in Asia, rose 0.6% in Europe, and closed nearly unchanged in the U.S. on light volume. Friday, stocks gained 0.3% in Asia and Europe but closed nearly unchanged in the U.S. on volume consistent with a quadruple witching day. The VXO rose 13% to close at 16.04. Precious metals fell 1% and their miners rose twice that amount. The Dow and S&P indices dropped below their 27,000 and 3000 benchmarks respectively. Apple closed below its 220 benchmark.

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