TOKYO, March 16 (Reuters) – Benchmark TOCOM rubber futures edged higher on Wednesday, helped by position adjustments after the previous day’s fall to a near 2-week low, but gains may be capped as investors wait for the outcome of a U.S.Federal Reserve policy meeting.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for August delivery JRUc6 0#2JRU: was up 1.6 yen, or 1.0 percent, at 169.3 yen per kg as of 0030 GMT. It ended down 2.3 percent the previous day after touching 166.6 yen, the lowest since March 4. 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.
U.S.retail sales fell less than expected in February, but a sharp downward revision to January’s data could reignite concerns about the economy’s growth prospects.
The Bank of Japan said on Tuesday it would maintain its massive asset buying programme at existing levels but offered a bleaker view of the economy, suggesting it may roll out more stimulus as it struggles to reach an elusive inflation target.
MARKET NEWS
The U.S.dollar nursed losses on the yen, which tends to gain at times of risk aversion.
The dollar fetched 113.09 yen JPY= in early Asian trade on Wednesday. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) took a knock from a firmer yen and slipped 0.8 percent in Wednesday trade. MKTS/GLOB
Oil settled 2 percent lower on Tuesday as the market yielded to technical pressure and worries that U.S.crude stockpiles were still growing amid falling output and refinery maintenance.
DATA/EVENTS
The following data is expected on Wednesday: (Time in GMT)
1230 U.S. Consumer prices Feb
1230 U.S. Housing starts Feb
1230 U.S. Building permits Feb
1315 U.S. Industrial output Feb
1800 Federal Open Market Committee releases statement
1830 Fed Chair Janet Yellen holds news conference
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
