TOKYO, July 7 (Reuters) – Benchmark TOCOM rubber futures fell to a nearly two-week low on Thursday, weighed down by a rise in the yen and an extended loss in Shanghai futures overnight. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for December delivery JRUc6 0#2JRU: was down 1.3 yen, or 0.8 percent, at 153.0 yen ($1.51) per kg at 0028 GMT, after earlier touching its lowest since June 27 at 149.7 yen. It ended down 3.4 percent the previous day. RUB/T
U.S.services industry activity hit a seven-month high in June as new orders surged and companies hired more workers, suggesting the economy regained speed in the second quarter.
MARKET NEWS
The yen soared to a 3-1/2 year high against the British pound and climbed to two-week peaks versus the dollar on Wednesday on mounting worries about the broader impact that Britain’s vote to leave the European Union would have on the global economy. The U.S. dollar was quoted around 101.13 yen JPY= early on Thursday.
Japan’s benchmark Nikkei stock average (XC0009692440) was steady in Thursday trade, after U.S.stocks reversed early losses to close higher the previous day.
Oil prices settled up nearly 2 percent on Wednesday as robust U.S. economic data lifted crude futures from two days of declines, with the market extending gains in post-settlement trade on bets for a sharp drop in U.S.crude stockpiles.
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
0600 Germany Industrial output May
0830 Britain Industrial output May
1215 U.S. ADP national employment Jun
1230 U.S. Weekly jobless claims
($1 = 101.2000 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
