TOKYO, Nov 18 (Reuters) – Benchmark TOCOM rubber futures inched lower on Wednesday, falling toward a 6-year low hit earlier this month, as nagging worries over slowing demand in top buyer China outweighed a weaker yen and rising Tokyo stock market.
FUNDAMENTALS
- The Tokyo Commodity Exchange rubber contract for April delivery JRUc6 0#2JRU: was trading down 1.1 yen, or 0.7 percent, at 156.4 yen ($1.27) per kg by 0042 GMT, after rebounding the previous day. It hit a low of 153.0 yen on Nov.6, the lowest since July 2009.
- Crude rubber inventories at Japanese ports stood at 11,070 tonnes as of Oct. 31, down 3.6 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Tuesday.
- Finnish winter tyre maker Nokian Tyres NRE1V.HE said a fast recovery was unlikely in Russia, where it operates its main plant, giving a disappointing forecast for the group’s sales growth.
- U.S.consumer prices increased in October after two straight months of declines as the cost of healthcare and other services rose, evidence of firming inflation that further supports views that the Federal Reserve will raise interest rates next month.
MARKET NEWS
- Copper prices touched their lowest levels in more than six years on Tuesday as fears about demand growth in top consumer China and a higher dollar fuelled negative sentiment. MET/L
- U.S.crude oil prices edged above $41 a barrel in early trading in Asia on Wednesday following reports of falling stockpiles and rising refinery activity, but analysts said the market would remain under pressure for the rest of the year and into 2016.
- The U.S. dollar edged up against the yen after a report showed U.S.consumer prices rose in October after two months of falls.
Japan’s benchmark Nikkei stock average (XC0009692440) was up 0.8 percent in Wednesday trade after a steadily weakening yen wiped away risk-averse sentiment caused from the Paris attacks.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
- 0130 China House prices Oct
- 1330 U.S. Housing starts Oct
- 1330 U.S. Building permits Oct
- 1900 Minutes of Federal Reserve’s Oct 27-28 meeting
($1 = 123.3700 yen)
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
