Originally published at: This week in charts: Highs and lows – InvestEngine Insights
S&P 500 trading higher than all year-end price targets
Bloomberg’s crystal ball does often miss a beat when it comes to consensus forecasts. 2024 is looking to be no different as all of the year-end price targets by most large investment banks have far exceeded most estimates.
Oil erases gains for 2024
Rising oil supplies and tepid demand caused the natural resource to close at a yearly low of $72.70 per barrel. This is usually not a concern given that less than five years ago we saw the extraordinary event of oil prices going into the negative.
However, commodity prices have continued to decline as of late as downbeat economic data from China and the US fuel worries about a slowdown in demand. The demand for oil is often regarded as an indicator of global growth and an indication of what is to come.
Boeing is back where it was 10 years ago
Boeing is no stranger to controversy as of late, the troubles in January when a disused emergency exit door blew off a brand new Boeing 737 Max shortly after take-off was the beginning of a series of unfortunate events for the aircraft manufacturer.
Despite no-one seriously being hurt, the company is facing a number of criminal investigations into the incident itself as well as legal actions from passengers aboard the plane. This incident has had much wider repercussions and has cast the spotlight on the corporate culture and attitude to safety of the aerospace giant.
Boeing’s track record of scandals spans for many years, notably five years ago two brand new 737 Max planes were lost in almost identical accidents caused by flawed flight control software. An accident that resulted in a $2.5bn lawsuit where the company faced accusations that it had put profits ahead of passengers’ lives.
UK house prices reaching a two-year high in August
House prices in the UK reached a two-year high as the recent interest rate cut boosts confidence amongst homebuyers.
According to Halifax, buyer confidence has been boosted by the cut in interest rates by the Bank of England, the first cut in four years. Although not a huge cut and as the average house in the UK sits at £292,505, the remainder of the interest rate cuts could prove to be prosperous for house prices going forward.
0.5% cut coming soon to the US
As we countdown to the first interest rate cut by the Federal Reserve, markets are currently pricing in a 0.5% to the base interest rate from the current level of 5.50%.
The Federal Reserve is yet to cut rates and join the likes of the Bank of England and the European Central Bank, slower than expected jobs growth has prompted the chairman of the FED to release a statement that almost certainly guarantees a rate cut in the next meeting in a couple of weeks.
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