TOKYO, Jan 29 (Reuters) – Benchmark TOCOM rubber futures edged lower in light trade on Friday, remaining on track for a weekly loss of a nearly 3 percent, with investors making position adjustments ahead of a policy decision by Japan’s central bank.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for July delivery JRUc6 0#2JRU: was down 1.2 yen, or 0.8 percent, at 156.6 yen per kg by 0038 GMT, after ending down 0.7 percent the previous day. RUB/T For the week, it was heading for its first loss in three weeks.
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.
New orders for long-lasting U.S.manufactured goods in December recorded their biggest drop in 16 months as lower oil prices and a strong dollar pressured factories, the latest indication that economic growth braked sharply at the end of 2015.
MARKET NEWS
The yen stayed on the defensive early on Friday as the market waited to see if the BOJ would ease policy, while the dollar languished at two-week lows in the face of disappointing U.S.economic data.
Japan’s benchmark Nikkei stock average (XC0009692440) was steady on Friday after oil cobbled together a third session of gains and markets wagered U.S.interest rates would not be rising much this year, if at all.
U.S.crude oil futures extended gains on Friday to take their weekly rise to more than 4 percent on hopes of a global deal between oil-producing countries to help tackle a growing supply glut.
DATA/EVENTS (GMT)
The following data is expected on Friday: (Time in GMT)
0630 France Preliminary GDP Q4
0700 Germany Retail sales Dec
1000 Euro zone Inflation Jan
1330 U.S. Advance GDP Q4
1445 U.S. Chicago PMI Jan
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
