The charts that matter: Brent, bitcoin and bond yields flying high

Government bond yields continued to climb, along with bitcoin and the oil price. Here’s how that has affected the charts that matter most to the global economy.

Welcome back.

This week’s cover story is rather timely, as we remain in the grip of an energy crisis with gas prices sky-high and queues still forming at petrol stations. We’re looking at hydrogen. Now, you may be inclined to put hydrogen power in the same box as usable graphene and nuclear fusion. It all sounds incredibly fantastic – there’s just the small matter of practicality. There’s still a very long way to go and a great many hurdles to leap before we can heat our homes and fuel our cars with the stuff. But, says Stuart Watkins, hydrogen is now “rapidly becoming global policy” and is “set to become a multi-trillion-dollar industry”. Stuart picks some of the best ways for you to buy in.

Elsewhere, Max King looks at what we can learn from the top investment trusts of the last 20 years – 42 of them have risen more than tenfold in that time. Max explains what made the winners stand out and how we can identify those that will outperform in the future.

If you’re not already a subscriber to MoneyWeek magazine, sign up here and get your first six issues free.

In this week’s podcast, Merryn talks to James Ferguson of MacroStrategy. Things are about to get ugly in the bonds markets – the “daddy of all markets”. And if that happens, “things are going to get a lot harder for everybody”. You need to find a way of protecting your portfolio. Find out what James thinks here.

Here are the links for this week’s editions of Money Morning and other web articles you may have missed:

Now for the charts of the week.

The charts that matter

Gold remains in the doldrums as bitcoin, which many see as its digital replacement, continues to head back to its record high.

Gold price chart

Gold price chart

(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) slipped, but recovered towards the end of the week.

US dollar index chart

US dollar index chart

(DXY: three months)

The Chinese yuan (or renminbi) traded sideways (when the red line is rising, the dollar is strengthening while the yuan is weakening).

USD/CNY currency chart

USD/CNY currency chart

(Chinese yuan to the US dollar: since 25 Jun 2019)

The yield on the ten-year US government bond continued to climb. Beware: they’ve probably got a way to go yet, says James Ferguson in this week’s podcast.

US ten-year Treasury bond yield chart

US ten-year Treasury bond yield chart

(Ten-year US Treasury yield: three months)

The yield on the Japanese ten-year bond started the week on a low note, but joined in the global climb.

Japanese government bond yield chart

Japanese government bond yield chart

(Ten-year Japanese government bond yield: three months)

And the yield on the ten-year German Bund is fast approaching positive territory, though it remains negative for now.

German Bund yield chart

German Bund yield chart

(Ten-year Bund yield: three months)

Copper meandered its way sideways.

Copper price chart

Copper price chart

(Copper: nine months)

The closely-related Aussie dollar climbed against the US dollar.

AUD/USD currency chart

AUD/USD currency chart

(Aussie dollar vs US dollar exchange rate: three months)

Bitcoin hit over $55,000 – almost back to its $64,000 high.

Bitcoin price chart

Bitcoin price chart

(Bitcoin: three months)

US weekly initial jobless claims fell by 38,000 to 326,000. The four-week moving average rose by 3,500 to 340,500.

US initial weekly jobless claims chart

US initial weekly jobless claims chart

(US initial jobless claims, four-week moving average: since Jan 2020)

The oil price headed over $80 a barrel and we’re unlikely to see it fall, says John.

Brent crude oil price chart

Brent crude oil price chart

(Brent crude oil: three months)

Amazon recovered some lost ground as the wider Nasdaq market rose.

Amazon share price chart

Amazon share price chart

(Amazon: three months)

Tesla continued its march higher.

Tesla share price chart

Tesla share price chart

(Tesla: three months)

Have a great weekend.

Recommended

Early repayment charges: should you abandon your fixed-rate mortgage for a new deal now?
Mortgages

Early repayment charges: should you abandon your fixed-rate mortgage for a new deal now?

Increasing numbers of homeowners are paying an early repayment charge to leave their fixed-rate mortgage deal early, and lock in a new deal now. Shoul…
30 Sep 2022
Energy meter reading day: why you need submit your gas and electricity readings now
Personal finance

Energy meter reading day: why you need submit your gas and electricity readings now

Energy meter reading day - you need to submit your gas and electricity readings as soon as possible ahead of the October energy price increase
30 Sep 2022
Should you fix your mortgage? Here are the best rates available now
Mortgages

Should you fix your mortgage? Here are the best rates available now

Rising interest rates look set to spring a nasty surprise on millions of homeowners next year. You need to take steps today to protect yourself from a…
30 Sep 2022
Why the Bank of England intervened in the bond market
Government bonds

Why the Bank of England intervened in the bond market

A sudden crisis for pension funds exposed to rapidly rising bond yields meant the Bank of England had to act. Cris Sholto Heaton looks at the lessons …
30 Sep 2022

Most Popular

Why everyone is over-reacting to the mini-Budget
Budget

Why everyone is over-reacting to the mini-Budget

Most analyses of the chancellor’s mini-Budget speech have failed to grasp its purpose and significance, says Max King
29 Sep 2022
How the end of cheap money could spark a house price crash
House prices

How the end of cheap money could spark a house price crash

Rock bottom interest rates drove property prices to unaffordable levels. But with rates set to climb and cheap money off the table, we could see house…
28 Sep 2022
Why UK firms should start buying French companies
UK stockmarkets

Why UK firms should start buying French companies

The French are on a buying spree, snapping up British companies. We should turn the tables, says Matthew Lynn, and start buying French companies. Here…
28 Sep 2022