The charts that matter: growth stocks continue their slide

As the US tech stocks and the dollar fell further this week, here’s what happened to the charts that matter most to the global economy.

Welcome back. 

This week, we’re delving into the world of fintech – financial technology. We’re all much more comfortable living our financial lives via apps on our smartphones. And we’re not the only ones. Fintech is growing rapidly around the world, and especially in emerging markets where the “legacy” financial institutions didn’t get so much of a grip on life as in the developed world. Many companies will reap the rewards, while others will go to the wall, and Matthew Partridge picks the ones that should thrive. 

Elsewhere, David Stevenson poses five questions for fund investors to ask themselves this year, while Max King picks a couple of dozen bargain investment trusts for your consideration. Find out what they are in this week’ s issue of the magazine –  if you’re not already a subscriber, sign up here and get your first six issues free

Merryn’s guests on the podcast this week are Ian Lance and Nick Purves who between them manage the Temple Bar investment trust. They explain how their approach to value investing means that when they buy a business, they often get profitable divisions that have been discounted by the wider market “thrown in for free”.  Listen to what they have 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 climbed back up after the previous week’s fall. 

(Gold: three months)

(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 hard as inflation in America hit its highest since 1982.

(DXY: three months)

(DXY: three months)

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

USD/CNY chart

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

The yield on the ten-year US government bond fell back after last week’s sharp rise.

(Ten-year US Treasury yield: three months)

(Ten-year US Treasury yield: three months)

The yield on the Japanese ten-year bond did the same.

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

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

And the yield on the ten-year German Bund – after almost hitting positive territory – fell back, too.

(Ten-year Bund yield: three months)

(Ten-year Bund yield: three months)

Copper bounced back strongly.

(Copper: nine months)

(Copper: nine months)

And the closely-related Aussie dollar turned up, too.

(Australian dollar vs US dollar)

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

Bitcoin saw no real respite in its decline.

(Bitcoin: three months)

(Bitcoin: three months)

US weekly initial jobless claims rose by 23,000 to 230,000. The four-week moving average rose by 6,250 to 210,750. 

(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 surged higher.

(Brent crude oil: three months)

(Brent crude oil: three months)

Amazon had another bad week as the tech-heavy Nasdaq index sold off again.

(Amazon: three months)

(Amazon: three months)

And Tesla saw a similar decline.

(Tesla: three months)

(Tesla: three months)

Have a great weekend.

Recommended

Amazon halts plans to ban UK Visa credit card payments
Personal finance

Amazon halts plans to ban UK Visa credit card payments

Amazon has said that it is to shelve its proposed ban on UK customers making payments with Visa credit cards.
17 Jan 2022
Unilever slides and GSK bounces after GSK knocks back £50bn bid
UK stockmarkets

Unilever slides and GSK bounces after GSK knocks back £50bn bid

Unilever shares fell to their lowest level in around five years, after its £50bn takeover bid for GSK’s consumer health unit was rejected. 
17 Jan 2022
Cladding crisis: what new proposals for mean for housebuilders and leaseholders
Property

Cladding crisis: what new proposals for mean for housebuilders and leaseholders

The government has said that no leaseholder living in a block of flats more than 11 metres tall should “ever face any costs” for fixing dangerous clad…
17 Jan 2022
Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022

Most Popular

Five unexpected events that could shock the markets in 2022
Stockmarkets

Five unexpected events that could shock the markets in 2022

Forget Covid-19 – it’s the unexpected twists that will rattle markets in 2022, says Matthew Lynn. Here are five possibilities
31 Dec 2021
Which investment trusts performed the best in 2021?
Investment trusts

Which investment trusts performed the best in 2021?

Shivani Khandekar runs through the top ten investment trusts of 2021 – and the worst performing trusts – and looks ahead to 2022.
7 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022