Keep your head

Interesting times? I would call them tumultuous with the T-word and D-word being increasingly bandied about (i.e. the “Thirties” and “Depression”). And, as a glass-half-full sort of scribe, it is getting difficult to ‘keep you head’ (and I have put Kipling back on the shelf); it is also difficult to find a different way of saying the same thing.

Okay, the percentage declines in World bourses are easing, save for China where today the Shanghai Composite closed 3.8% down (at 2526.82) and, by number, it was 0.39 off a 100 point fall (although it had been triple digits down in morning trade). August's inflation data is due to be promulgated tomorrow and little respite from July’s 6.4% is expected – but with the signs posts good. The smart money, too, says, there will be one more interest rate rise in China; but is this wise in the current climate? Already the Yuan is at new post-regulatory high (it touched 6.4250 against the US dollar today) and the Chinese Government is buying more and more dollars.

In terms of commodities, there is little doubt that today will add to Friday’s eighth day of losses as measured by the Standard & Poor’s GSCI Spot Index (the worst since December 2008). But tell that to gold market, where - at the time of writing - the price had hit a new record of $1715.75. But real life goes on and, in particular, check out the news flow in iron and steel (posted earlier).

“Be prepared to ride the cycles and trends of life; success is never permanent, and failure is never final” - Brian Tracy

SHANGHAI COMPOSITE
Today: -3.79% to 2,526.82 at close
Last week: -2.79%
August (so far): -6.5%
YTD: -10.0%
Year ago: -4.9%

HANG SENG:
Today: -2.17% to 20,490.57 at close
Last week: -6.66%
August (so far) -8.7%
YTD: -11.0%
Year ago: -5.5%

OIL: $83.58
GOLD: $1709.80
(new ‘immediate delivery’, intra-day high of $1715.75 on 8 August 2011)
EURO/$ SPOT: 1.4260