Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
An account already exists for this email address, please log in.
The charts that matter: another big bitcoin crash
Bitcoin suffered another of its big corrections this week. Here's how that's affected the charts that matter most to the global economy.
This week, we turn our weary locked-down eyes to foreign holidays, and specifically to the airline sector. The idea that vaccines could bring the virus under control have made investors – and would-be travellers – optimistic, and the share prices of many airlines are back on the way up. Matthew Partridge takes an in-depth look at the sector and picks the best-placed shares to buy now.
In the podcast this week, Merryn talks to one of our favourite global economists, Dambisa Moyo. She talks about the future role of corporations vs governments at a time when public trust in big companies – not necessarily fairly, says Dambisa – is not particularly high. She also has a lot to say about the economic recovery (or lack of) from the pandemic, the strength of China’s economy, and the prospects for the UK and Europe. Listen to what she has to say here.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
This week’s “Too Embarrassed To Ask” video takes a look at Dogecoin, the cryptocurrency created specifically to poke fun at the whole cryptocurrency thing, which everyone is now taking seriously after some remarkable gains (and some big falls too). Watch that here.
The US dollar index (DXY – a measure of the strength of the dollar against a basket of the currencies of its major trading partners) turned up towards the end of the week.
(Image credit: DXY: three months)
(DXY: three months)
The dollar’s bounce is reflected in chart of the Chinese yuan (or renminbi) – when the red line is rising, the dollar is strengthening while the yuan is weakening.
(Image credit: Chinese yuan to the US dollar: since 25 Jun 2019)
(Chinese yuan to the US dollar: since 25 Jun 2019)
The downward drift in the yield on the ten-year US government bond continued for another week.
(Image credit: Ten-year US Treasury yield: three months)
(Ten-year US Treasury yield: three months)
The yield on the Japanese ten-year bond also continued to drop.
(Image credit: Ten-year Japanese government bond yield: three months)
(Ten-year Japanese government bond yield: three months)
The yield on the ten-year German Bund, however, continued its slow rise towards positive territory.
(Image credit: Ten-year Bund yield: three months)
(Ten-year Bund yield: three months)
Copper’s positive mood continued as it headed back up, almost hitting its most recent high.
(Image credit: Copper: nine months)
(Copper: nine months)
The closely-related Aussie dollar didn’t seem to share its enthusiasm, however, drifting downwards against the strengthening US dollar.
(Image credit: Aussie dollar vs US dollar exchange rate: three months)
(Aussie dollar vs US dollar exchange rate: three months)
Cryptocurrency bitcoin plummeted this week – a much bigger fall than we’ve seen in recent months. John explained in yesterday’s Money Morning how US president Joe Biden’s plans for higher taxes on “the rich” may have had something to do with it. If you missed, it, have a read of it here.
(Image credit: Bitcoin: three months)
(Bitcoin: three months)
US weekly initial jobless claims fell again – down 39,000 to 547,000, compared to 586,000 last week (revised up from 576,000). It’s the lowest number of claims since March 2020. The four-week moving average fell to 651,000, down 27,750 from 678,750 (which was revised down from 683,000) the week before.
(Image credit: US initial jobless claims, four-week moving average: since Jan 2020)
(US initial jobless claims, four-week moving average: since Jan 2020)
The oil price seems to be making its way back up.
(Image credit: Brent crude oil: three months)
(Brent crude oil: three months)
Amazon continued its modest retreat from its recent high.
Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
