Welcome back.
On the cover of this week’s magazine, we’ve got Japan’s stockmarket and why it is looking promising. Japan offers investors access to the Asian growth story combined with the comforts of investing in a developed market, says Alex Rankine.
Meanwhile, our big investment feature this week is how to profit from pampered pets beyond the pandemic. When widespread Covid-19 lockdowns began, many people bought a pet to survive the lack of human interaction. But “the surge in pet ownership induced by the pandemic merely reinforced a long-standing trend,” says Matthew Partridge.
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This week’s “Too Embarrassed To Ask” video explains what an “index” is. Even if you don’t invest, you have most certainly heard the term. The best-known indexes tend to be the ones that represent individual countries’ stock markets. Here's what it means and why it matters.
And joining Merryn on the podcast this week is AVI Japan Opportunity Trust’s Joe Bauernfreund. They talk about how the Japanese market is valuable despite being hugely under-researched. Find out what Joe has to say here.
Here are the links for this week’s editions of Money Morning and other web articles you may have missed:
- Monday Money Morning: Coal is far from dead. What should investors do about it?
- Web article: Chinese tech firms are moving from listing in New York to Hong Kong. Are they worth buying?
- Tuesday Money Morning: After a stunning 2020, how is 2021 shaping up for investment trusts?
- Web Article: What’s behind China’s stockmarket meltdown?
- Merryn’s Blog: Signs of a top? One of the world’s oddest bubbles is back
- Wednesday Money Morning: Oil is taking a well-earned rest. But the bull market isn’t
- Web Article: Big tech smashes expectations with bumper profits
- Thursday Money Morning: What does the US dollar’s sudden about-turn mean for the markets?
- Friday Money Morning: Two private equity trusts: one to buy, one to avoid
Now for the charts of the week.
The charts that matter
The gold price rose a little after the metal had lost a little ground in the previous week.
(Gold: three months)
The US dollar index (DXY – a measure of the strength of the dollar against a basket of the currencies of its major trading partners) fell week-on-week (which partly explains the slight uptick in gold prices.
(DXY: three months)
The yield on the ten-year US government bond rose after a weak auction on Thursday contributed to risk-on sentiment.
(Ten-year US Treasury yield: three months)
The yield on the Japanese ten-year bond had a volatile week ending slightly higher than where it started.
(Ten-year Japanese government bond yield: three months)
And the yield on the ten-year German Bund fell too.
(Ten-year Bund yield: three months)
Copper rose compared to the previous week as investors bet on strong demand for the metal in the second half of 2021.
(Copper: nine months)
The closely-related Aussie dollar rose a little in the week after the dollar gave up some gains.
(Aussie dollar vs US dollar exchange rate: three months)
Bitcoin rose in the week after news broke out that Amazon may tap into cryptocurrencies.
(Bitcoin: three months)
US weekly initial jobless claims fell by 24,000 to 400,000. The four-week moving average was 394,500, an increase of 8,000 from the previous week's revised average.
(US initial jobless claims, four-week moving average: since Jan 2020)
The oil price rose after US inventories fell below the five-year average.
(Brent crude oil: three months)
Amazon turned sharply lower after China sparked a wider sell-off and after the company was fined €746m by Luxembourg’s officials for breaching EU privacy laws.
(Amazon: three months)
And Tesla rose after posting strong second quarter earnings.
(Tesla: three months)
Have a great weekend.
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8 of the best houses for sale for around £1mProperty Houses for sale for around £1m – from an apartment in a converted church overlooking Abbey Road Studios, London, to a Georgian house in Devon with views towards Dartmoor
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Trapped in a time of zombie governmentIt’s not just companies that are eking out an existence, says Max King. The state is in the twilight zone too.
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America is in deep denial over debtThe downgrade in America’s credit rating was much criticised by the US government, says Alex Rankine. But was it a long time coming?
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UK economy avoids stagnation with surprise growthGross domestic product increased by 0.2% in the second quarter and by 0.5% in June
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Bank of England raises interest rates to 5.25%The Bank has hiked rates from 5% to 5.25%, marking the 14th increase in a row. We explain what it means for savers and homeowners - and whether more rate rises are on the horizon
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UK wage growth hits a record highStubborn inflation fuels wage growth, hitting a 20-year record high. But unemployment jumps
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UK inflation remains at 8.7% ‒ what it means for your moneyInflation was unmoved at 8.7% in the 12 months to May. What does this ‘sticky’ rate of inflation mean for your money?
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VICE bankruptcy: how did it happen?Was the VICE bankruptcy inevitable? We look into how the once multibillion-dollar came crashing down.
