Well, this week is not going to be easy but then again, we expected it after those Britons voted to Brexit. There are parts of UK that did not vote for it and so many right wingers are in media demanding that Britain gets out ASAP.
This week will be hard on all the nerves, all the investors, all the gamblers and all the financial news reporters.
Granted, it really is not the end of the world and the sky is not falling. It is also not Armageddon. Au contraire, this opens up many opportunities for people to deal with England which they could not do so in the past while UK followed the rules of the EU.
Then of course we have some jokers. You can name a few. Britain is suddenly free from the chains which were binding her. Say what? Some people made good money though. They hedged for Yes or Non. Others just assumed that Britons could never vote to exit the EU. You see, this is why you should only trade with money you can afford to lose.
The Uganda shilling well well. It actually traded under its support of 3425 but ended up closing at 3415 on the US dollar. It closed at 4510 on the British pound, 3763 on the Euro, 50.28 on the Rupee, 33.73 on the Kenyan shilling, 2611 on the Canadian dollar (time to send mom money), 2506 on the Australian dollar and 1.56 on the Tanzania shilling.
Some Ugandans can be a bit funny. On Social Media some people were praising Brexit saying that Uganda would no longer be tied to the EU. Such short sight. UK is one of the biggest donors to Uganda. Watch the Uganda shilling tank. If the right wingers in UK get away with it, Uganda will be royally screwed. No more freebies.
Coffee Arabica closed at $3.45 a kilo.
Coffee Robusta closed at $1.88 a kilo.
Minor pull back on coffee but nothing to write home about. Coffee gained a lot over the last 2 weeks and given the market turmoil, it is normal that people take out some profits. As a matter of fact, this week and next week spell gains for coffee. Well, the markets will keep many traders awake 24 by 7 and that means coffee.
Gold is trending at $1319 per ounce and lost $13.82 per ounce. Wait, this means that the markets are recovering. We will see in a bit.
Oil (Brent Crude) closed at 47.42 after losing $1.02 per barrel. The worrying thing is that crude crossed under its support of the 200 day moving average (MA). It was topping out even before Brexit so crude is likely to fall some more. Gravity!
Shanghai may have discovered the cure for cancer. While markets were tanking, $SSEC just sat back and hardly moved. It gained 41 points. Seriously? God made heaven and earth and China made the rest. No wonder!
Hong Kong is doing that thing again. It moves aggressively and then ends up closing at the same level with no change. Very annoying. Actually, boring.
Tokyo gained 357 points. This chart actually can make people cry. The drop from Friday was so huge and oh well, deal with it. Welcome to the Nikkei. The index which gives people heart attacks.
Frankfurt – ouch! It lost 289 points. Where is Merkel when we need an iron lady? The chart is very very bad. In fact badder than bad.
Paris – they cannot be serious! They did worse than Frankfurt. That is it. No kids’ vacations to Paris. The $CAC tanked really badly. Who even taught them about gravity?
London is not doing as badly as the other markets. Let us make this the chart for today. I think the $FTSE will surprise people. What I think will happen this week is the Short Squeeze and Margin calls. http://www.theinsider.ug/primer-on-stock-market-turbulence/
Toronto lost 202 points. The $TSX closed under its 200 day MA and is now solidly in bear market (more sellers than buyers). But Toronto is oil heavy so when oil sneezes, the TSX catches bronchitis.
Dow Jones Industrial Average lost 260 points and closed under its 50 day MA. Bears all over the place.
Standard and Poor – holly cow! The S&P lost 37 points. Wait… this is nasty. It is definitely a bear market.
NASDAQ – omg. The NAS gapped down and proceeded south. It lost 113 points. This makes no sense. The Nasdaq is techie heavy and it is dropping like this! But then again, it also feeds off the Dow.
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Martha Leah Nangalama
I have an IT and business background. All my opinions are mine and mine alone. They do not reflect on The Insider or any company I am affiliated with.