The charts that matter: bond yields turn back up and a new bitcoin record

Bitcoin hit a new all-time high, while government bond yields turned back up. Here’s how that has affected the charts that matter most to the global economy.

Welcome back. 

This week, we’re looking at the labour shortage. Workers are leaving their jobs at an astonishing rate, especially in the US – 4.3 million of them in August, that’s 2.9% of the workforce. Simon examines what’s behind the mass resignations, and what it all means for the economy.

Elsewhere, Matthew Partridge looks at investing in railways. They had a dismal pandemic as people stopped commuting yet, even though it may be unlikely that we’ll fall back into the same working patterns, it’s not all doom and gloom. Railways aren’t all about commuters – governments want more of us to take the train for long-distance journeys, and rail-freight – which accounts for much of rail companies’ revenues – has been largely unaffected by lockdowns. There are plenty of opportunities for investors, and Matthew picks some of the best in this week’s magazine. If you’re not already a subscriber, sign up here and get your first six issues free

Merryn is joined by Andrew Hunt in this week’s podcast. You may have seen his feature on fossil fuels in last week’s magazine. Andrew’s a “deep value” investor, finding companies in the unfashionable corners of the market where many institutional investors fear to tread. He’s got lots of ideas on what to buy – listen to the 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:

Now for the charts of the week. 

The charts that matter 

Gold attempted to regain lost ground, but can’t manage to get above $1,800 an ounce.

Gold price chart

Gold price chart

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 further, though it bounced towards the end of the week.

US dollar index chart

US dollar index chart

The Chinese yuan (or renminbi) strengthened further against the dollar (when the red line is rising, the dollar is strengthening while the yuan is weakening). 

USD/CNY currency chart

USD/CNY currency chart

The yield on the ten-year US government bond started climbing again after dipping last week.

US Treasury bond yield chart

US Treasury bond yield chart

(Ten-year US Treasury yield: three months)

The yield on the Japanese ten-year bond tailed off after earlier gains.

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 climbed tantalisingly close to positive territory, bubbling under at -0.09%.

German government bond yield chart

German government bond yield chart

Copper dropped – could the supply squeeze be fading?

Copper price chart

Copper price chart

The closely-related Aussie dollar mirrored copper’s movements.

AUD/USD currency chart

AUD/USD currency chart

Bitcoin investors were cheering as the cryptocurrency surpassed its previous highs to hit over $67,000.

Bitcoin price chart

Bitcoin price chart

US weekly initial jobless claims fell by 6,000 to 290,000. The four-week moving average fell by 15,250 to 319,750. 

US initial weekly jobless claims chart

US initial weekly jobless claims chart

The oil price continued to head higher.

Brent crude oil price chart

Brent crude oil price chart

Amazon saw a strong rally.

Amazon share price chart

Amazon share price chart

Tesla continued its seemingly unstoppable rise, hitting $894.

Tesla share price chart

Tesla share price chart

Have a great weekend. 

Ben

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