TOKYO, Dec 15 (Reuters) – Benchmark TOCOM rubber futures were steady on Tuesday in thin trade ahead of a widely expected U.S.interest rate increase by the Federal Reserve this week.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: was up 0.2 yen at 166.5 yen ($1.37)per kg by 0112 GMT, after falling for a third session the previous day. RUB/T
Once the Fed lifts interest rates from near zero, the focus will turn to the other legacy of the crisis-era policies: the Fed’s swollen balance sheet.
It ends its two-day policy meeting on Wednesday.
Chinese leaders, meeting ahead of an agenda-setting conference, pledged on Monday to keep the country’s economic growth in a “reasonable range” in 2016 by expanding domestic demand and making supply-side improvements.
MARKET NEWS
U.S.crude rose nearly 2 percent Monday, recovering slightly after moving within a hair of 11-year lows, but analysts and traders said it is still too early to declare the market has reached its bottom.
Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.5 percent in Tuesday trade, after ending at a six-week low the previous day. .T
The dollar was flat at 121.04 yen JPY= in early Tuesday trade, having pulled back from a 6-week low of 120.35 the previous day. FRX/
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
1000 Germany ZEW economic sentiment Dec
1000 Euro zone Employment Q3
1330 U.S. Consumer prices Nov
1330 U.S. New York Fed manufacturing Dec
1500 U.S. NAHB housing market index Dec Federal Open Market Committee starts two-day policy meeting
($1 = 121.1500 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
