Monday, stocks in Asia rose 0.6%. In Europe and the U.S., they rose 0.3% on moderate volume. The record close syndrome continued with the Dow Jones Industrial Average and the S&P 500 again closing at record highs.
Tuesday, stocks again rose in Asia 0.6%. In Europe, they closed little changed. In the U.S. the record close syndrome continued. Although the gain was slight on low volume, it was enough to move all three major indices to record high closes.
True to form, investors in Asia and Europe held their breath as they awaited word from the Fed Wednesday. In the U.S., stocks gained slightly on moderate volume with the Dow and S&P again logging record closing highs. As expected Wednesday, the FOMC announced a slow reduction to their balance sheet starting in October.
Thursday, stocks fell 0.7% in Asia, rose 0.3% in Europe, and were slightly lower in the U.S. on low volume in the U.S., breaking the record closing high syndrome. Friday, stocks closed virtually unchanged in Asia, little changed in Europe, and up just slightly in the U.S. on low volume. Could the FOMC announcement define the top of this turkey market in stocks? With massive accommodation from central banks in Japan and Europe still under way, it’s a bit hard to see the impact.