TOKYO, Jan 20 (Reuters) – Benchmark TOCOM rubber futures on Wednesday slid from a 3-week peak touched the day before, hit by weaker prices for oil and Tokyo shares.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: was down 2.3 yen, or 1.4 percent, at 157.8 yen ($1.34) per kg by 0034 GMT.It marked its highest since Dec. 28 the previous day, buoyed by hopes of more stimulus efforts in the world’s top rubber buyer China. RUB/T
China’s economy grew at its weakest pace in a quarter of a century last year, raising hopes Beijing would cushion the slowdown with more stimulus policies.
MARKET NEWS
U.S. crude CLc1 fell below $28 a barrel for the first time since 2003 on Wednesday, with the world’s energy watchdog warning that the market could “drown in oversupply”. O/R
Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.7 percent in Wednesday trade, after U.S.stocks pared gains the previous day.
The U.S. dollar was quoted around 117.44 yen JPY= early on Wednesday, after surrendering most of its morning gains versus the Japanese yen as U.S.oil prices turned negative and investor appetite for risk evaporated.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0700 Germany Producer prices Dec
1330 U.S. Consumer prices Dec
1330 U.S. Housing starts Dec
1330 U.S. Building permits Dec
($1 = 117.4800 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
