TOKYO, June 2 (Reuters) – Benchmark TOCOM rubber futures dropped to a 1-week low on Thursday, extending losses into a second session on a firmer yen and slumping Tokyo stock prices.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for November delivery JRUc6 0#2JRU: was down 0.4 yen, or 0.3 percent, at 156.8 yen per kg at 0041 GMT, after plunging 5 percent the previous day. It earlier hit its lowest since May 25 at 156.0 yen. RUB/T
U.S. auto industry sales fell 6 percent in May, with General Motors Co GM.N , Ford Motor Co F.N and other manufacturers reporting lower U.S.vehicle sales for the month due to sluggish demand for sedans and two fewer selling days.
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The U.S.Federal Reserve’s latest Beige Book, released late Wednesday, showed modest growth across most economic regions, while noting that inflation is edging up and the labour market improving.
Reuters cited four OPEC sources as saying the Organization of the Petroleum Exporting Countries was likely to discuss an output ceiling at its meeting in Vienna on Thursday.Three sources said the ceiling needed to be set substantially above 30 million barrels per day and that lengthy discussions may be required.
Japanese Prime Minister Shinzo Abe announced on Wednesday a delay in a sales tax increase by 2-1/2 years, putting plans for fiscal reform on the back burner amid weakness in the economy.
MARKET NEWS
The yen sat on top of large gains against its peers early on Thursday after surging on risk aversion and disappointment over lack of clear policy guidance by Japan following a decision to delay a consumption tax hike.
A stronger yen makes yen-denominated assets less affordable when purchased in other currencies. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was down 1.2 percent in Thursday trade, dragged down by the firmer yen which dimmed the earnings outlook for exporters. MKTS/GLOB
Oil settled down on Wednesday on technical resistance at around the $50 a barrel mark.
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
0900 Euro zone Producer prices Apr
1145 European Central Bank interest rate announcement
1215 U.S. ADP national employment May
1230 U.S. Weekly jobless claims
1345 U.S. ISM-New York index May
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
