TOKYO, May 30 (Reuters) – Benchmark TOCOM rubber futures were steady on Monday, as softer oil prices late last week were offset by a weaker yen after comments by Federal Reserve Chair Janet Yellen rasied the prospects of a near-term U.S.interest rate hike.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for November delivery JRUc6 0#2JRU: dipped 0.5 yen, or 0.3 percent, at 161.6 yen ($1.46) per kg as of 0037 GMT, after marking a fifth straight weekly loss last week. RUB/T
The U.S.Federal Reserve should raise interest rates “in the coming months” if economic growth picks up as expected and jobs continue to be generated, Fed’s Yellen said on Friday.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.8 percent from the prior Friday, the exchange said on Friday.
Growth in China’s vast manufacturing sector likely stalled in May after slight expansions in the previous two months, a Reuters poll showed, throwing more cold water on hopes that the world’s second-largest economy is reviving.
The official manufacturing PMI data will be released on June 1.
American drivers logged a record number of miles in the first three months of the year, as travel rose 4.2 percent to 746 billion miles, the U.S.Transportation Department said on Friday.
MARKET NEWS
Oil prices dipped for a second day in a row on Friday as some investors took profit on a surge to seven-month highs while others worried about higher production with the market hovering near $50 a barrel. O/R
The U.S. dollar hit a one-month high against the yen early on Monday, standing at around 110.85 yen JPY= , after Fed’s Yellen said a U.S.rate hike was probably appropriate in coming months.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was up 0.6 percent in Monday trade, after U.S.stocks ended higher on Friday and the S&P 500 capped off its strongest week since March.
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
0530 France Detailed GDP Q1
0600 Germany Import prices Apr
0645 France Consumer spending Apr
0900 Euro zone Business climate May
1200 Germany Consumer prices May
($1 = 110.8300 yen)
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
