Business

Uganda shilling and global market report – October 28, 2016

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What a wild week in Uganda. So many things happened this week I do not even know if I am coming or going.

The shilling closed at 3458 on the US dollar. An improvement from yesterday. However 10 shillings is nothing to write home about. It has serious resistance at 3400 and support at 3500. Anything between the close and those 2 numbers is details. Expect more weakness next week since Europe did not have a chance to factor in today’s events (Minister of Finance saying the economy is struggling, Nakumati with empty shelves, nebilala nebilala).

Gold is at $1276 after gaining $8 per ounce. Well, we are seeing slow steady flight of cash into gold and precious metals. This is normal given the big thing goingk on in US and the other thing that fuels your cars and jets.

Brent Crude Oil lost $0.85 and closed at $50.67 per barrel.  A friend in Uganda told me that Exxonmobil profits fell by 38%. Ouch. The oil price does not reflect it.

GLOBAL MARKETS

Shanghai pulled back some more and lost 8 points. Although the SSEC is still bullish, the MACD says it is going to go bearish for a little bit. It has good support though so I would hold all positions.

Australia lost 8 points. This one was a nice short 4 days ago. It bounced off support so it will recover a bit and then continue its journey south. I would short the bounce.

Tokyo gained 110 points. What a nice run for the Nikkei.

Frankfurt lost 21 points. I believe in Germany but it has formed a triple top. I would be very careful with the DAX.

Paris gained 15 points. The CAC is acting bearish but it is not very scary. I would hold all positions.

London gained 10 points. You see there is no fall out from CETA. For now.

Toronto lost 48 points. Not catastrophic given that Exxonmobil owns a majority in Imperial Oil which trades on the TSX and NYSE. The TSX has been setting up a bear pattern before the XOM earnings today. This index would be good to short right about now but we have the Hillrump factor. Perhaps waiting is not a bad idea.

Dow Jones Industrial Average lost 8 points. It is in a tight range but after the elections you will see the INDU fly north. Professionals have already factored in losses in case Things Fall Apart.

Standard and Poor lost 7 points and is being more bearish than the Dow. Should we extrapolate?

Nasdaq lost 26 points and bearish. I had hoped that the Qualcom deal would lift it up. Seems gone are the days when we buy gadgets for Xmas for loved ones.

GLOBAL NEWS

Same same same. People are still killing others. World news is morbid.

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Martha Leah Nangalama

Moncton, Canada

Twitter: @mlnangalama

All opinions are mine.

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