TOKYO, Jan 21 (Reuters) – Benchmark TOCOM rubber futures fell for a second day on Thursday as cautious investors continued to sell on worries over declining oil prices and nagging concerns over slowing growth in the world’s biggest rubber buyer China.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for June delivery JRUc6 0#2JRU: was down 1.2 yen, or 0.8 percent, at 155.5 yen per kg at 0018 GMT, after dropping more than 2 percent the previous day. RUB/T
Around half of Japanese firms believe their country will have failed to rid itself of deflation a year from now, a Reuters poll shows, a sign that authorities are not gaining the traction they want as they battle an entrenched deflationary mindset.
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, which in turn prompted a rally on the country’s rollercoaster share markets.
MARKET NEWS
U.S.oil prices crashed below $27 dollars a barrel on Wednesday for the first time since 2003, caught in a broad slump across world financial markets with traders also worried that the crude supply glut could last longer.
The U.S. dollar was quoted around 117.14 yen JPY= early on Thursday, after diving to a more than one-year low of 115.96 yen the previous day as crude oil prices dropped near a 13-year trough and the U.S.stock market tumbled.
Japan’s benchmark Nikkei stock average (XC0009692440) was up 0.4 percent in Thursday trade despite a slide of more than 1 percent in Wall Street. MKTS/GLOB
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
0745 France Business climate Jan
1245 European Central Bank releases policy meeting outcome
1330 ECB President Mario Draghi holds news conference
1330 U.S. Weekly jobless claims
1330 U.S. Philly Fed business index Jan
1500 Euro zone Consumer confidence Jan
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
