TOKYO, Jan 26 (Reuters) – New benchmark TOCOM rubber futures dropped on Tuesday, weighed down by profit-taking after a renewed slump in oil prices, but trade was thin ahead of U.S.and Japanese central bank meetings later in the week.
FUNDAMENTALS
The Tokyo Commodity Exchange new rubber contract for July delivery JRUc6 0#2JRU: was down 1.9 yen, or 1.2 percent, from an opening price of 164.5 yen as of 0044 GMT.It rose to a fresh 4-week high the previous day.
The January contract expired at 153.8 yen on Monday.
The U.S. Federal Reserve is widely expected to leave its federal funds rate unchanged at 0.25-0.50 percent at the conclusion of its policy meeting on Wednesday. FED/DIARY
The Bank of Japan will end a two-day meeting on Friday, at which sources familiar with its thinking say it is likely to cut its core consumer inflation forecast for the coming fiscal year to possibly below 1 percent.
MARKET NEWS
U.S.crude futures dropped back below $30 a barrel in Asian trading on Tuesday, extending a near 6-percent fall made in the previous session, amid news that Iraq’s output reached a record high last month.
Japan’s benchmark Nikkei stock average (XC0009692440) tumbled more than 2 percent in Tuesday trade following losses in oil and on Wall Street. MKTS/GLOB
The U.S.dollar edged lower on Monday as renewed selling in oil markets drove investors into currencies often deemed less risky investments, such as the Japanese yen.
The dollar was quoted around 118.21 yen JPY= early on Tuesday.
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
1400 U.S. Monthly home price index Nov
1400 U.S. S&P/Case-Shiller housing index Nov
1500 U.S. Consumer confidence Jan Federal Open Market Committee starts two-day policy meeting
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
