TOKYO, May 31 (Reuters) – Benchmark TOCOM rubber futures rose on Tuesday, supported by end-of-month trading and hopes the market may have bottomed, but the contract was still headed for its biggest monthly drop in more than two years.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for November delivery JRUc6 0#2JRU: was up 1.5 yen, or 0.9 percent, at 164.5 yen ($1.48) per kg as of 0037 GMT, after edging higher the previous day.
Rubber was on track for a monthly fall of about 16 percent, its largest decline since January 2014, having tumbled in line with a pull-back across the commodities sector due to waning optimism over China demand and a firmer U.S.dollar.
St.Louis Federal Reserve President James Bullard said on Monday global markets appear to be “well-prepared” for a summer interest rate hike from the Fed, although he did not specify a date for the policy move.
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.
MARKET NEWS
The U.S. dollar slipped 0.3 percent to 110.83 JPY= early on Tuesday. But it rose as high as 111.455 in the previous session, its loftiest peak in a month, and was on track to notch a gain of 4 percent in May. FRX/
Oil prices inched up toward $50 a barrel on Monday, although uncertainty ahead of an OPEC producer-group meeting later in the week was expected to cap gains.
Japan’s benchmark Nikkei stock average (XC0009692440) was steady in Tuesday trade, after European shares reached a four-week high the previous day.The London and New York markets were closed on Monday for a public holiday.
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
0600 Germany Retail sales Apr
0755 Germany Unemployment rate May
0900 Euro zone Inflation flash May
0900 Euro zone Unemployment rate Apr
1230 U.S. Personal income Apr
1300 U.S. S&P/Case-Shiller housing index Mar
1345 U.S. Chicago PMI May
1400 U.S. Consumer confidence May
($1 = 110.8600 yen)
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
