Charts that count: the story of two central banks



Happy to see you again.

This week we take a look at a very exciting new industry. As you probably know, the meat industry has received a lot of attention recently, especially when it comes to its carbon emissions. So what can you do if you have a strong taste for quality steak, but prefer to leave animals out of the equation? Enter lab-grown meat – “pieces of meat that did not involve cruelty to animals or harm the environment, having been grown from animal cells harvested in the lab.” Stuart Watkins examines the current state of the industry and how investors can get a taste of it.

Elsewhere, Stephen Connolly takes a look at another relatively new industry – the burgeoning “buy now, pay later” industry that includes start-ups such as Klarna and Clearpay. But it’s not just startups, the big names are interested too. Stephen picks out some of the best stocks in the industry to consider.

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Merryn is joined by Dale Robertson on this week’s podcast. Dale is co-manager of the Chelverton European Select Fund, and he explains to Merryn why this is such an exciting time to invest in Europe, especially in small and micro cap stocks. Hear what he has to say here.

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

Now for the cards of the week.

Gold hovers around $ 1,800 per ounce. After slipping earlier on the basis of positive US economic data, the yellow metal rallied after the Federal Reserve was a little more dovish than expected, and the Bank of England was much more dovish than expected – which implies that central bankers in developed countries are not quite as ready to raise rates as everyone had perhaps started to believe.

(Gold: three months)

The US dollar index (DXY – a measure of the dollar’s strength against a basket of currencies from its major trading partners) had a mixed week after the Fed began to “scale back” its quantitative easing program.

US dollar index chart

(DXY: three months)

The Chinese yuan (or renminbi) has strengthened against the US dollar (when the red line rises, the dollar strengthens while the yuan weakens).

USD / CNY currency chart

(Chinese yuan in US dollar: since June 25, 2019)

The return on the Ten-year US government bond slipped.

U.S. Treasury Bond Yield Chart

(Ten-year US Treasury yield: three months)

The return on the Japanese ten-year bond fell hard (keeping in mind that we’re still talking about a few basis points – one basis point being 0.01 percent – here).

Japanese government bond yield chart

(Yield on ten-year Japanese government bonds: three months)

And the yield on the German Bund at ten years moved back too.

German Bund Yield Chart

(Ten-year Bund yield: three months)

The copper prices continued to fall.

Copper Price Table

(Copper: nine months)

The closely related Australian dollar fell in sympathy.

AUD / USD currency chart

(Australian dollar to US dollar exchange rate: three months)

Bitcoin is off its all-time high, but still holds up to over $ 60,000.

Bitcoin Price Table

(Bitcoin: three months)

Weekly Initial Unemployment Claims in the United States fell from 14,000 to 269,000. The four-week moving average fell from 15,000 to 284,750. Meanwhile, the non-farm payroll in the United States was a little stronger than expected.

Table of initial weekly jobless claims in the United States

(Initial jobless claims in the United States, four-week moving average: since January 2020)

The oil price fell, recovering from recent highs despite the Opec oil cartel promise to keep production at current levels.

Brent crude oil price chart

(Brent gross: three months)

from amazon The stock saw another sharp rise as the Nasdaq and S&P 500 hit new records.

Amazon stock price table

(Amazon: three months)

You’re here continued its seemingly unstoppable rise.

Tesla share price table

(Tesla: three months)

Have a good week-end.


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