This week, political “news” overshadowed financial market news. The media made a full-court press to take Trump out. Despite their best efforts, it appears they’re getting desperate — trotting out questionable accusers with wild accusations from thirty years ago that wither under scrutiny. At times, it felt like the financial markets didn’t matter. Indeed, the net change in stocks for the week turned out to be uneventful.
Monday, stocks closed nearly unchanged in Asia, rose 0.9% in Europe, and rose 0.5%: on light volume. The VXO of fell 11% to close at 12.49. Tuesday, stocks fell — in Asia 0.8%, in Europe 0.6%, and in the U.S. 1.3% on light volume. The VXO shot up 22% to close at 15.25. The 10-Year U.S. Treasury Bond yield moved up 2% to close at 1.76. Perhaps Alcoa’s more dismal than usual earnings report influenced sentiment. Wednesday, stocks fell 0.5% in Asia and Europe but closed little changed in the U.S. on low volume. Precious metals miners gained 2% as notes from the most recent FOMC meeting indicated bias moving toward raising rates.
Thursday, stocks fell 0.9% in Asia and Europe. In the U.S. stocks fell 0.4% on light volume. The VXO climbed another 8:% to close at 16.55. The 10-Year U.S. Treasury Bond yield moved down 2% to close at 1.74. Friday, stocks rose in Asia 0.4% and gained 1.3% in Europe while closing little changed in the U.S. on light volume. Precious metals miners fell 2% while the 10-Year U.S. Treasury Bond yield moved up 3% to close at 1.79.