TOKYO, Oct 29 (Reuters) – Benchmark TOCOM rubber futures climbed for a second day on Thursday, helped by soaring oil princes and firmer Tokyo stocks after a U.S.Federal Reserve statement made it clear that a December rate hike was still a possibility.
FUNDAMENTALS
- The Tokyo Commodity Exchange rubber contract for April delivery JRUc6 0#2JRU: had risen 2.7 yen, or 1.7 percent, to 162.3 yen per kg by 0050 GMT, after rebounding from a 6-year low the previous day. RUB/T
- The Fed kept interest rates unchanged on Wednesday and in a direct reference to its next policy meeting put a December rate hike firmly in play.
- Thai rubber farmers took aim at the government on Wednesday, demanding it approve measures to help increasingly desperate growers in the world’s top exporting nation for the commodity.
- AutoNation Inc (AN) , the largest U.S.auto dealership chain, said on Wednesday net income rose to an all-time quarterly record, reflecting strong growth in vehicle sales and its service business.
- Volkswagen (VLKPF) posted its first quarterly loss in at least 15 years on Wednesday, hit by a 6.7 billion euros ($7.31 billion) charge to cover the cost of rigging diesel emissions tests, and said the final bill was likely to be higher.
MARKET NEWS
- U.S.crude oil prices rose more than 6 percent on Wednesday as the government reported an inventory build that reversed bearish market expectations, putting the market on a volatile course after three straight days of losses.
- The yen weakened against a broadly strong dollar, which rose to 121.12 JPY = from Wednesday’s low of 120.02, after the Fed rekindled market expectations that it might still be on track to raise interest rates by year-end. The yen was quoted at 120.64 yen in early Asia trade on Thursday. FRX/
- Japan’s benchmark Nikkei stock average (XC0009692440) added 0.4 percent in Thursday trade buoyed by data released before the open that showed Japan’s industrial output rose 1.0 percent in September from the previous month, far better than economists’ median forecast for a 0.5 percent drop.
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
- 0855 Germany Unemployment rate Oct
- 1000 Euro zone Business climate Oct
- 1230 U.S. GDP Advance Q3
- 1230 U.S. Weekly jobless claims
- 1300 Germany Consumer prices Oct
- 1400 U.S. Pending homes sales Sep
($1 = 0.9160 euros)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
