TOKYO, March 15 (Reuters) – Benchmark TOCOM rubber futures fell more than 2 percent on Tuesday as an overnight slump in oil and metals prices reduced risk appetite, with many investors waiting for policy decisions from the Bank of Japan and the U.S.Federal Reserve.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for August delivery JRUc6 0#2JRU: was down 4.2 yen, or 2.5 percent, at 167.4 yen per kg as of 0046 GMT, after snapping a four-day losing streak the previous day. RUB/T
The Fed won’t raise interest rates this week, but will likely make clear that as long as U.S.inflation and jobs continue to strengthen, economic weakness overseas won’t stop rates from rising fairly soon.
A souring consumer mood and global headwinds create an uncomfortable backdrop for Tuesday’s policy meeting of the Bank of Japan, which prefers to stand pat after its shock January decision to adopt negative interest rates.
MARKET NEWS
Oil prices fell about 3 percent on Monday on concerns that a six-week market recovery had gone beyond fundamentals as U.S.crude stockpiles continue to build and Iran maintains little interest in joining major producers in freezing production.
Aluminium hit a three-week low on Monday and copper also fell, weighed by a stronger dollar and weak Chinese industrial output. MET/L
The U.S. dollar was nearly flat against its Japanese counterpart at 113.78 yen JPY= early on Tuesday, as investors waited for the outcome of the BOJ’s two-day policy meeting later in the session. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was steady in Tuesday trade after Wall Street closed little changed the previous day. MKTS/GLOB .N
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
0430 Japan Industrial Output Rev, Jan JPIP4=ECI
0745 French CPI Final MM Feb FRHIC=ECI
0100 Eurozone Employment Q4 EUEMPQ=ECI
1230 U.S. PPI Final Demand MM Feb USPPFD=ECI
1230 U.S. Retail Sales MM Feb USRSL=ECI
1255 U.S. Redbook MM USREDM=ECI
1400 U.S. Business Inventories MM Jan USBINV=ECI
1400 U.S. NAHB Housing Market Index March USNAHB=ECI
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
