TOKYO, Sept 18 (Reuters) – Benchmark TOCOM rubber futures slid on Friday, putting the contract on track for a three percent weekly loss, after a decision to keep U.S.interest rates steady revived fears about the global economy and sparked profit-taking.
FUNDAMENTALS
- The Tokyo Commodity Exchange rubber contract for February delivery fell 3.7 yen, or 2.1 percent, to 172.5 yen per kg by 0059 GMT, after surging more than three percent the previous day.
- The U.S.Federal Reserve kept interest rates unchanged on Thursday in a bow to worries about the global economy, financial market volatility and sluggish inflation at home, but left open the possibility of a modest policy tightening later this year.
- China’s policymakers think they can stem a rapid rundown of their foreign exchange reserves and ease pressure on the currency by pump-priming the economy to meet this year’s growth target, sources involved in policy discussions said
MARKET NEWS
- The U.S.dollar steadied against the yen after a moderate decline.
It was buying 120.18 yen JPY= in early Asian trade, slightly above late U.S. levels after falling as low as 119.80 yen overnight in the wake of the Fed’s more downbeat assessment. - Japan’s benchmark Nikkei stock average was down 1.6 percent in Friday trade, after major Wall Street indexes gave up a 1 percent rally to end lower, with the S&P 500 index .SPX losing 0.3 percent.
- Global oil futures fell Thursday, resuming their slide after a brief spike following the Federal Reserve’s announcement that it would leave U.S.interest rates unchanged.
- Copper hit nearly two-month highs on Thursday after a assive earthquake in top producer Chile but then retreated as reports showed little damage to mines so far.
DATA/EVENTS (GMT)
The following data is expected on Friday: (Time in GMT)
- 0130 China House prices Aug
- 0800 Euro zone Current account Jul
- 1400 U.S. Leading index Aug
($1 = 119.7500 yen)
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
