TOKYO, Jan 7 (Reuters) – Benchmark TOCOM rubber futures extended losses into a fourth day on Thursday, hitting fresh 7-year lows as investors stepped up selling after oil prices dove to an 11-year-low and amid growing concerns over slowing growth in top buyer China.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for June delivery was down 0.7 yen, or 0.5 percent, at 147.5 yen per kg at 0107 GMT, after hitting 147.0 yen, the lowest since March 25.
Natural rubber prices in India, the world’s fifth-biggest producer, dropped to their weakest in 6-1/2 years on Wednesday, following losses in overseas prices and on sluggish demand, three dealers said.
A raft of data releases from China in coming weeks is likely to show activity in the world’s second-largest economy continuing to slow, adding to global concerns about the country’s economic outlook for 2016.
Auto sales in Brazil are expected to fall in 2016 for the fourth year in a row, national dealership association Fenabrave forecast on Wednesday, accumulating a 36 percent drop since 2012 as the country plunges deeper into recession.
MARKET NEWS
Crude oil prices plunged 6 percent on Wednesday, diving below $35 per barrel for the first time since 2004 as data showing a shockingly large build-up of U.S.gasoline supplies fed fears that a global surplus was still growing.
The yen hovered at multi-month highs against its peers early on Thursday after investors snapped up the safe-haven currency as global uncertainty sapped risk appetite. The yen was quoted around 118.63 yen JPY= in early Asia trade. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.5 percent in Thursday trade, as worries about the Chinese economy, reflected recently in a sharply lower yuan, kept investors nervous.
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
0900 Germany industrial orders for Nov
0900 Germany retail sales for Nov
1000 euro zone business climate for Dec
1000 Euro zone economic sentiment for Dec
1230 US Challenger Layoffs for Dec
1330 US initial jobless claims weekly
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
