Originally published at: This week in charts: China bounces back – InvestEngine Insights
Oil prices rise
Oil prices climbed this week due to concerns that escalating conflict in the Middle East could disrupt global energy supplies. There are fears that key energy infrastructure could be at risk, leading to potential supply shortages. Analysts and traders cautioned that if the violence spreads, it may disrupt energy exports, as the region accounts for roughly one-third of the world’s oil production.
Brent crude, the international benchmark, rose over 8%, to $78 a barrel.
More Bank of England cuts to come
The Bank of England has two meetings remaining this year, one in November, and one in December. The market is currently expecting one 0.25% rate cut for November, with opinion divided on whether there will be a further 0.25% cut in December:
China’s zero to hero
China’s recent rally, which we mentioned last week, catapulted the Chinese stock market into being one of the best performing markets this year. The region has gone from a 0% return in 2024, making it one of the worst performing major stock markets, to a return of over 30% and one of the best performing:
Despite this recent rally, the Chinese market is still over 40% below its peak in 2021:
Investors still flocking to cash
Investors are still pouring cash into money-market funds (MMFs), with global assets held in MMFs now approaching $6.5tn. Money market funds, which are funds holding ultra-low risk bonds and time deposits, often offer better interest rates than traditional savings accounts.
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