Stocks Fall, All the Bonds Rise
Stocks Fall, All the Bonds Rise (Bloomberg)
For the fifth straight day, the S&P 500 fell again, by 0.4%. The Stoxx Europe 600 Index also dropped to a seven-week low. Gold and silver fell more than one percent. However, government bond rates rose in the United States, Germany, the United Kingdom and Spain, and the euro rose against most other major currencies. Markets were reacting to positive U.S. economic news about employment, leading to fears of tapering, and European Central Bank President Mario Draghi’s admission that the euro zone may be approaching a prolonged period of inflation.