The charts that matter: a tale of two central banks
Government bond yields slipped around the world this week. Here’s how that has affected the charts that matter most to the global economy.
Welcome back.
This week, we’re looking at a very exciting new sector. As you’re probably aware, there has been a lot of focus on the meat industry recently, especially over its carbon emissions. So, what can you do if you’ve got a taste for prime steak but would rather leave the animals out of the equation altogether? Enter lab-grown meat – ”cuts of meat that have involved no cruelty to the animal or harm to the environment, having been cultured from harvested animal cells in a laboratory”. Stuart Watkins looks at the state of the industry now and how investors can get a taste.
Elsewhere, Stephen Connolly casts his eye over another relatively new industry - the burgeoning “buy now pay later” sector that includes start-up companies including Klarna and Clearpay. But it’s not just startups, the big names are also showing an interest. Stephen picks some of the best stocks in the sector for you to consider.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
If you’re not already a subscriber, sign up here and get your first six issues free.
Merryn is joined by Dale Robertson in this week’s podcast. Dale is co-manager of the Chelverton European Select Fund, and he tells Merryn why it’s such an exciting time to be investing in Europe, especially in small and micro-cap stocks. Listen to what he 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: The one thing that can pop the house price bubble
- Tuesday Money Morning: Meme coins can be a laugh or even make you money – but they’re also scam central
- Wednesday Money Morning: Are investors doomed?
- Thursday Money Morning: The Federal Reserve is printing less money – so why have markets hit record levels?
- Friday Money Morning: The Bank of England gives markets a shock
- Cryptocurrency roundup: Ether hits a new high and a dramatic week for dogecoin-inspired SHIB
Now for the charts of the week.
Gold is hovering at around $1,800 an ounce. Having slid earlier on the back of positive US economic data, the yellow metal recovered after the Federal Reserve was a little more dovish than expected, and the Bank of England was a lot more dovish than expected – implying that developed world central bankers aren’t quite as ready to hike rates as everyone had perhaps started to believe.
(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) had a mixed week after the Fed started “tapering” its quantitative easing programme.
(DXY: three months)
The Chinese yuan (or renminbi) strengthened against the US dollar (when the red line is rising, the dollar is strengthening while the yuan is weakening).
(Chinese yuan to the US dollar: since 25 Jun 2019)
The yield on the ten-year US government bond slipped.
(Ten-year US Treasury yield: three months)
The yield on the Japanese ten-year bond fell hard (bearing in mind that we’re still talking just a few basis points – one basis point being 0.01 of a percent – here).
(Ten-year Japanese government bond yield: three months)
And the yield on the ten-year German Bund retreated, too.
(Ten-year Bund yield: three months)
Copper prices continued to fall.
(Copper: nine months)
The closely related Aussie dollar fell in sympathy.
(Aussie dollar vs US dollar exchange rate: three months)
Bitcoin is off its all-time high but is still holding out at over $60,000.
(Bitcoin: three months)
US weekly initial jobless claims fell by 14,000 to 269,000. The four-week moving average fell by 15,000 to 284,750. Meanwhile US non-farm payrolls were a good bit stronger than expected.
(US initial jobless claims, four-week moving average: since Jan 2020)
The oil price fell, sliding back from its recent highs despite oil cartel Opec promising to keep production at current levels.
(Brent crude oil: three months)
Amazon's stock saw another big rise as both the Nasdaq and the S&P 500 hit new records.
(Amazon: three months)
Tesla continued its apparently unstoppable climb.
(Tesla: three months)
Have a great weekend.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Ben studied modern languages at London University's Queen Mary College. After dabbling unhappily in local government finance for a while, he went to work for The Scotsman newspaper in Edinburgh. The launch of the paper's website, scotsman.com, in the early years of the dotcom craze, saw Ben move online to manage the Business and Motors channels before becoming deputy editor with responsibility for all aspects of online production for The Scotsman, Scotland on Sunday and the Edinburgh Evening News websites, along with the papers' Edinburgh Festivals website.
Ben joined MoneyWeek as website editor in 2008, just as the Great Financial Crisis was brewing. He has written extensively for the website and magazine, with a particular emphasis on alternative finance and fintech, including blockchain and bitcoin.
As an early adopter of bitcoin, Ben bought when the price was under $200, but went on to spend it all on foolish fripperies.
-
Parents face £1,000 'nanny tax' – how to afford it
Hiring a nanny is about to become even more of an expensive hassle for families, especially those in London. Here's how to cut costs
By Ruth Jackson-Kirby Published
-
Business rates relief to be slashed – how to cut costs
Labour has promised to reform business rates, the corporate equivalent of council tax
By David Prosser Published
-
UK wages grow at a record pace
The latest UK wages data will add pressure on the BoE to push interest rates even higher.
By Nicole García Mérida Published
-
Trapped in a time of zombie government
It’s not just companies that are eking out an existence, says Max King. The state is in the twilight zone too.
By Max King Published
-
America is in deep denial over debt
The downgrade in America’s credit rating was much criticised by the US government, says Alex Rankine. But was it a long time coming?
By Alex Rankine Published
-
UK economy avoids stagnation with surprise growth
Gross domestic product increased by 0.2% in the second quarter and by 0.5% in June
By Pedro Gonçalves Published
-
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
By Ruth Emery Published
-
UK wage growth hits a record high
Stubborn inflation fuels wage growth, hitting a 20-year record high. But unemployment jumps
By Vaishali Varu Published
-
UK inflation remains at 8.7% ‒ what it means for your money
Inflation was unmoved at 8.7% in the 12 months to May. What does this ‘sticky’ rate of inflation mean for your money?
By John Fitzsimons Published
-
VICE bankruptcy: how did it happen?
Was the VICE bankruptcy inevitable? We look into how the once multibillion-dollar came crashing down.
By Jane Lewis Published