TOKYO, Jan 28 (Reuters) – Benchmark TOCOM rubber futures were steady on Thursday after the Federal Reserve kept interest rates unchanged, while investors turned their focus to a two-day policy meeting by the Japanese central bank starting later in the day.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for July delivery JRUc6 0#2JRU: was up 0.1 yen at 159.0 yen per kg as of 0030 GMT, after edging higher the previous day. RUB/T
The Fed kept interest rates unchanged on Wednesday and said it was “closely monitoring” global economic and financial developments, signaling it had accounted for a stock market selloff but wasn’t ready to abandon a plan to tighten monetary policy this year.
The Bank of Japan will conclude a two-day policy 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.
Thailand’s cabinet on Tuesday approved 15 billion baht ($418.18 million) in soft loans for rubber production and processing in a bid to boost rubber use and support farmers hit by falling prices.
MARKET NEWS
The U.S. dollar managed to gain on the yen, rising as far as 119.08 JPY= after the Fed’s more cautious outlook reduced the likelihood it would raise rates by a quarter-point four times this year. It has since stepped back to 118.60 yen. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) fell about one percent in Wednesday trade after Wall Street stocks dropped the previous day as the Fed’s latest assessment on the economy did not wipe out the chances of a possible rate increase in March, which disappointed some stock investors. MKTS/GLOB
Oil futures surged on Wednesday after Russia indicated there was a possibility of co-operation with OPEC, fanning hopes for a deal to reduce a global oversupply that sent prices to the lowest levels in over a dozen years last week.
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
0700 Germany Import prices Dec
0930 Britain Preliminary GDP Q4
1000 Euro zone Business climate Jan
1300 Germany Consumer prices Jan
1330 U.S. Durable goods orders Dec
1330 U.S. Weekly jobless claims
1500 U.S. Pending home sales Dec
($1 = 35.8700 baht)
(Reporting by Yuka Obayashi; Editing by Ed Davies)
