The Uganda shilling is moving into the right direction and how wonderful it feels. It closed at 3390 on the US dollar, 4499 on the British pound, 3808 on the Euro, 50.67 on the Rupee, 33.49 on the Kenyan shilling, 2598 on the Canadian dollar, 2557 on the Australian dollar and 1.55 on the Tanzania shilling. The shilling now has its resistance at 3375 on the US dollar and its support at 4000.
These are close levels so we can shift a bit and put resistance at 3350 but it has been having a hard time breaking through it. Meanwhile it has easily crashed through the 3375 (former support) repeatedly. So bearing that we hit 4000, the real next big support will be 4425 and if we close above 4000 on the US dollar, you will see panic. This shilling is good for shorting now because if you keep up with the Geo-political affairs from Uganda, this shilling has no leg to stand on except the mercy of the people.
Coffee Arabica closed at $3.78 per kilo.
Coffee Robusta closed at $2.12 per kilo.
Gold closed at $1328 after losing $10 per ounce.
Brent Crude Oil closed at $47.88 after losing $1.77 per barrel.
WTI Crude Oil closed at $45.88 after losing $1.78 per barrel.
Refer to the 2 reports I shared this week on OIL. It is going down. Ignore the hype or stay on the sidelines. You can find them on my blog. I shared them on all social media too.
Shanghai fell by 17 points but it is not bridging any support so it still remains very strong.
Hong Kong rose some 5 points and it has no resistance in sight. It is flying north.
Tokyo gained 7 points which is absolutely useless for the Nikkei. At least it is not tanking.
Frankfurt fell 102 points and it is showing some weakness here but still remaining within a tight range which could go either up or down. For the down side, it has wonderful support so risk takers on the short side could try it. I would hold my positions and not sell or add until it is more definitive because at the moment the DAX looks like it is consolidating before it swings up or at worst crashes through some 5 levels of support. I do not see the latter happening.
Paris fell 51 points and its downside looks more definitive than the DAX but the CAC follows the former quite closely so I would hold all positions for now. However, if I were adventurous, I would shot it for maybe 10 contracts (options, not stocks, sheesh).
London lost 82 points. Now this changes the whole picture for Europe. The 3 indices could make good shorts if you can spare the money. They put in red candles; Paris and London are testing support. Frankfurt is no where near testing it so be careful on that one.
Toronto gapped down and crashed through support. It lost 263 points. Damn it oil, why did you have to go and do that silly thing?
Dow Jones Industrial Average – Holly CRAP. Was there an earthquake in USA and we missed it? I only reported on one earth quake in East Africa (Uganda and Tanzania, 10 died) and it was only a 5.7 magnitude on the Richter scale. The Dow did not only gap down. It opened under its support (50 day moving average) and then proceeded to follow gravity like the sky was falling. We have had a rough week in Uganda and most of us have been focusing on the happenings in Africa
Standard and Poor lost 53 points. Is this basketball? What the bloody hell happened on Wall Street today? The chart is ugly like you have no idea.
NASDAQ – Ditto. I give up. It lost 134 points. Something is going on in New York people. Let us check on the Global news though.
<< Volatility is back.
The tranquillity that enveloped global markets for more than two months was upended Friday as worries about interest rates sent stocks and bonds tumbling in a broad-based selloff.
Global equities fell the most since Britain voted to secede from the European Union.
The yield on the 10-year Treasury note jumped to the highest since June and the U.S. dollar almost erased a weekly slide as a Federal Reserve official warned waiting too long to raise rates threatened to overheat the economy.
German 10-year yields rose to zero for the first time since July after the European Central Bank downplayed the need for more stimulus.
Canada’s main stock index suffered its biggest loss since February, slumping to a five-week low as higher bond yields in major economies pressured global stock and commodity markets.
The Toronto Stock Exchange’s S&P/TSX composite index closed down 263.38 points, or 1.8 percent, at 14,540.00.
All 10 of the index’s major groups ended lower. The Canadian dollar dropped 0.65 of a cent to 76.70 cents US.
The S&P 500 fell nearly 2.5 per cent, capping its first move of at least 1 percent after 43 sessions, the longest such streak since 2014, as it broke below a roughly 30-point range it’s held for about two months. The gauge had hovered near a record reached on Aug. 15 amid mixed economic data and speculation about the Fed’s stance on rates. Before today’s selloff, the index was up 19 percent from a 22-month low in February, and less than half a percent from its all-time high.
“Lots of skittishness and the hawkish noise comes as people begin to doubt the efficacy of monetary policy,” said Michael Block, chief strategist at Rhino Trading Partners LLC in New York. “The stock selloff is happening in conjunction with a global bond pullback.”
The rout started Thursday when European Central Bank President Mario Draghi downplayed the need for more measures to boost growth. Declines accelerated on Friday as Boston Fed President Eric Rosengren warned against waiting too long to raise interest rates. Mr. Rosengren’s comments moved him firmly into the hawkish camp, sending the odds for a rate hike this year above 60 percent.
DoubleLine Capital Chief Investment Officer Jeffrey Gundlach said it’s time to prepare for higher rates.
“This is a big, big moment,” Gundlach said during a webcast Thursday. “Interest rates have bottomed. They may not rise in the near term as I’ve talked about for years. But I think it’s the beginning of something and you’re supposed to be defensive.”
Calm had dominated financial markets in late summer with equity volatility and bond yields near historic lows and measures of cross-assetcorrelation at the highest levels since at least the financial crisis. The rise in the influence of different markets on each other has been attributed to the growing impact of central bank policy on prices, and rising concern that the era of easing may be nearing an end roiled assets from bonds to currencies and stocks on Friday.
“Dovish Fed members getting called up to bat for a hike is putting people on edge,” Yousef Abbasi, a global market strategist at JonesTrading Institutional Services LLC, said by phone. “The more hawkish-leaning investors are grabbing onto that and it’s certainly one of those days where people are positioning for that September hike being back on the table.”
“It’s really difficult to be an investor in U.S. equities right now because benchmarks are just glued to those all-time highs,” said Steven Santos, a broker at Banco de Investimento Global SA in Lisbon. “There isn’t much conviction to really push stocks higher, but you also don’t want to completely give up on stocks when returns elsewhere look miserable.”
Bloomberg, Reuters, Canadian Press>>> Via The Globe and Mail
Find more global news by checking http://www.theinsider.ug/category/world-news/
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Martha Leah Nangalama
I have an IT and Business background.