TOKYO, March 17 (Reuters) – Benchmark TOCOM rubber futures soared to a one-week high on Thursday, buoyed by a jump in oil prices after major producers firmed up plans to meet in Doha to discuss an output freeze plan and a less hawkish U.S.monetary outlook.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for August delivery JRUc6 0#2JRU: was up 5.9 yen, or 3.5 percent, at 176.4 yen per kg as of 0032 GMT, hitting the highest since March 10. It rose 1.7 percent the previous day. RUB/T
The U.S. Federal Reserve held interest rates steady on Wednesday and indicated that moderate U.S.economic growth and “strong job gains” would allow it to tighten policy this year, with fresh projections showing policymakers expected two quarter-point hikes by the year’s end, half the number seen in December.
A global deal to freeze oil production could be signed in April and exclude Iran, which has the right to boost output after years of sanctions, Russian energy minister Alexander Novak said on Monday after talks in Tehran.
Later on Thursday, the Bank of England will announce a policy decision, and is expected to stand pat.
A Reuters poll last week showed that most economists do not expect the BOE to raise rates until the first quarter of 2017, versus the fourth quarter of 2016 seen in a poll taken just a month before.
India’s natural rubber imports in February dropped 11.7 percent from a year ago to 27,280 tonnes, as consumption moderated during the month, the state-run Rubber Board said in a statement on Wednesday.
MARKET NEWS
U.S.oil prices jumped almost 6 percent on Wednesday after Qatari oil minister Mohammed Bin Saleh Al-Sada said producers from within and outside the Organization of the Petroleum Exporting Countries will meet in Doha on April 17 to discuss output freeze plans.
Japan’s benchmark Nikkei stock average (XC0009692440) rose 1.4 percent in Thursday trade, taking cues from Wall Street, where the S&P 500 closed at its highest level this year following the U.S.central bank’s dovish messages.
The U.S. dollar edged up 0.2 percent to 112.77 JPY= after skidding to a one-week low of 112.335 in the aftermath of the Fed’s announcement. FRX/
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
1000 Euro zone Eurostat trade Jan
1200 Bank of England interest rate decision
1230 U.S. Weekly jobless claims
1230 U.S. Philly Fed business index Mar
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
