Starting from today, the report will be a little different. I will be providing the currencies of East Africa and how they pair up with their key trading partners. Above is the chart for today.
Coffee Arabica closed at $3.02 a kilo.
Coffee Robusta closed at $1.63 a kilo.
Coffee is rising up slowly. We always want a rise no matter how small it is since most East African countries rely on it.
Gold closed at 1114 per ounce. A very tiny fall but insignificant. The key thing is people are not rushing into gold.
Oil rose up nicely and finished the day at $34.47. This one is going up nicely. What a relief.
Shanghai is misbehaving. It fell again 2.92% (80 points) closing at 2656. This chart is disheartening. It had acted like things were looking up and then! This is the problem right here. God made heaven and earth and China made the rest. This persistent under performance by Shanghai has implications for the whole world.
Hong Kong did not move even one point. This is encouraging. Perhaps Hong Kong is ignoring mainland China.
Tokyo fell 0.71% (122 points) closing at 17041. The chart looks encouraging. Remember there will always be profit takers when we have some days of positive trading. I would not even worry about this drop.
Frankfurt lost 2.44% (241 points) closing at 9640. The chart looks like it may make it but it hit at the positive closing levels of last 2 days and this is where caution comes in handy. That China might be more powerful than we think.
Paris was undecided. It fell rather hard then recovered. It ended the day by a loss of 1.33% (58 points) finishing at 4322. The small loss was still held in the body of yesterday’s rise so we might be safe in Paris.
London also fell by 0.98% (59 points). London falling is not really that bad because it did not fall below the last few days trading levels. Who let the dogs out? Profit takers can be annoying.
Toronto – hallelujah! Thank heaven for oil rising. TSX rose by 1.73% (214 points) closing at 12592. The beauty of Toronto is the 50 day moving average is falling super fast so hopefully we can trade above that line and make it become our support.
Dow Industrial Average gained a bit and rose 0.79% (125 points) finishing at 16070. Remember that the Dow is also commodity heavy and oil is a factor. Think of all the big oil companies which are in the Dow index.
Standard and Poor tried. It rose 0.55% (10 points) finishing at 1893 points. This one is like “hey people, I know I set the momentum for the markets so I will try and not hurt you too much”. Nice chart on it though.
NASDAQ took some cough medicine and decided to follow the parents. It rose 0.86% (39 points) and finished at 4507. As long as the big cousins behave, the Nasdaq is on its way up.
Barring all odds, we need China to get moving. China is keeping us down but not by a whole lot. The world might just say “forget about China and let us have our own party”. China can recover. If Russia does not mess them up or Iran dumps a million barrels of crude on the market. The last I read about Russia were demonstrations because of the falling rubble and budget adjustment. Then about Iran was something like some European countries had to cover up their statues to avoid “offending” someone. Welcome to the world.
Martha Leah Nangalama
The writer is an IT analyst for an oil company and has traded stocks, options and forex in the past.
All my opinions are mine and mine alone. They do not reflect on my employer or any organisation I am affiliated with.