TOKYO, June 29 (Reuters) – Benchmark TOCOM rubber futures inched higher on Wednesday, with investor appetite for risk picking up as the initial shock of Britain’s vote last week to leave the European Union faded.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for December delivery JRUc6 0#2JRU: was up 0.4 yen, or 0.3 percent, at 153.9 yen ($1.50) per kg at 0037 GMT, after edging down the previous day. RUB/T
Britain’s vote to exit the EU could pose a new drag on the U.S. economy at a time when momentum in the U.S.job market may already by slowing, Federal Reserve governor Jerome Powell said on Tuesday.
China’s economy will grow at about 6.6 percent this year, and will need to be underpinned by policy support in the second half to counter downward pressures, according to the China Academy of Social Sciences (CASS).
MARKET NEWS
Japan’s benchmark Nikkei stock average (XC0009692440) climbed 0.8 percent in Wednesday trade, joining a rally in European and U.S.shares as the immediate impact of Britain’s vote to leave the EU began to wane.
Oil prices jumped 3 percent or more on Tuesday with investors buying back into the market after a two-day rout triggered by Britain’s referendum. O/R
The U.S. dollar was up against the safe-haven yen at 102.45 yen JPY= in early Wednesday trade. FRX/
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
- 0600 Germany GfK consumer sentiment Jul
- 0900 Euro zone Business climate Jun
- 1200 Germany Consumer prices Jun
- 1230 U.S. Personal income May
- 1330 Federal Reserve Chair Janet Yellen speaks at ECB event
- 1400 U.S. Pending home sales May
($1 = 102.4500 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
