TOKYO, July 27 (Reuters) – Benchmark TOCOM rubber futures rose on Wednesday, recovering from a 2-week low hit the previous day, as investors looked for bargains after a three-day losing streak and as the yen eased against the U.S.dollar.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery JRUc6 0#2JRU: was up 2.3 yen, or 1.5 percent, at 156.1 yen ($1.49) per kg as of 0117 GMT, after falling more than 2 percent the previous day. RUB/T
All eyes in financial markets are on the Fed, which concludes its two-day policy meeting later on Wednesday.
The U.S.central bank is widely expected to stand pat on monetary policy and the markets will sift through its statements – a post-meeting press conference will not be held – for any hints of a future interest rate hike.
Yen moves and political considerations could be decisive factors for Bank of Japan policymakers agonizing over whether to expand stimulus yet again on Friday or to save their dwindling policy resources in case the economy takes a turn for the worse.
MARKET NEWS
The yen JPY= fell about 0.4 percent in early trade on Wednesday to 105.06 per dollar, retreating from Tuesday’s high of 103.995 per dollar.A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
Japan’s benchmark Nikkei stock average (XC0009692440) rose 1.2 percent in Wednesday trade, following a relatively upbeat session overnight for U.S. and European stocks, with caution ahead of the U.S.Federal Reserve’s policy decision capping gains.
U.S. crude prices fell on Tuesday, hitting three-month lows, on renewed worries of a glut while Brent settled higher due to its better fundamentals versus U.S.crude.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0600 Germany Import prices Jun
0645 France Consumer confidence Jul
0645 France Producer prices Jun 0830 Britain Preliminary GDP Q2
1230 U.S. Durable goods Jun
1400 U.S. Pending homes sales Jun
1800 Federal Open Market Committee releases policy statement
($1 = 105.0200 yen)
(Reporting by Yuka Obayashi; Editing by Ed Davies)
