Weekly Update 5 May 2017
Commodities were mixed, while currencies, bonds and major stock indexes were higher this week. The biggest gains were in Bitcoin, which rose a whopping 18.1% to close at 38.3 grams. European stocks also soared, rising 8.2% in anticipation of a Macron victory in the French elections this weekend. The Euro was also the strongest government-issued currency, gaining 4.0%. Crude oil was down 3.4%, the largest drop for any asset class.
Even the Japanese Yen, the weakest of the currencies, gained 2.1%. Bitcoin was the strongest of all currencies, and the strongest asset class overall, rising 18.1%. Bitcoin made a new all-time high every day this week until Thursday, when it peaked at 38.4 grams before settling at 38.3 grams on Friday.
Bonds were higher, and continued to favor the shorter maturities, with the long term TLT up 2.2%, short term SHY up 3.0% and USD cash up 3.1%.
The only equities to close lower were the gold stocks: the HUI fell 0.1%. The Japanese Nikkei index rose 1.5%, the weakest showing of any major index, while the Euro STOXX gained a massive 8.2%. The S&P 500 added 3.8%.
The weakest commodities were crude oil and silver, which dropped 3.4% and 2.3% respectively. Platinum fell to a new all-time low of 22.7 grams on Wednesday, then recovered a bit to finish the week at 23.0 grams, down 0.9%. The biggest commodity gains were in coffee, which rose 4.9%, and cotton, which rose 1.6%.