The Uganda shilling finished this week at 3410 on the US dollar, 4951 on the British pound, 3726 on the Euro and 33.38 on the Kenyan shilling. [Source: xe dot com.]
Expect the shilling to keep weakening as you have seen the big bounce it makes in December did not happen. So January is unlikely to give that bounce.
Gold ended at $1106 an ounce. [Source: jmbullion dot com.]
Usually gold goes up as people look for safety but it has not been making any significant moves for a while one.
Which makes me think that despite the stock markets falling, the world still has confidence in the performance of equities albeit commodities are another issue.
Arabica coffee closed at $3.02 per kg.
Robusta closed at $1.7 per kg. [Source: ico dot org.]
Brent crude oil closed at $33.36 a barrel. You will see from the chart that the trend is down. We will likely see a small bounce up the $37 range but certainly hit resistance and fall back down.
The geopolitical issues in the Middle East and North Africa would normally result into higher oil prices. However the playing field has changed now since the invasion of Kuwait and even Iraq.
There are a lot more oil wells now and the cost of production is lower. Some of you may have seen the CEO of Total saying oil prices will not recover in 2016 and his company hopes to break even at $70 in 2017.
[Oil chart is attached].
All the major indices closed the week down. And down by a whole lot. London, Paris, Frankfurt, Shanghai, Hong Kong, Tokyo, Dow Jones, Nasdaq and Toronto.
It must have been bloody this week on the trading floors. All the charts are red. [Source: stockcharts dot com.]
We can thank China for the global sell off this week.
Those who follow me on Google, my blog and Facebook would have seen my earlier comments and shared business articles about this.
Martha Leah Nangalama