TOKYO, Aug 3 (Reuters) – Benchmark TOCOM rubber futures rose on Wednesday following an overnight gain in Shanghai futures, but the rise may be capped with the yen hitting a 3-week high after soft U.S. data raised doubts about a near-term rise in U.S.interest rates.
FUNDAMENTALS
- The Tokyo Commodity Exchange rubber contract for January delivery JRUc6 0#2JRU: was up 1.3 yen, or 0.8 percent, at 155.4 yen ($1.54) per kg as of 0054 GMT, after falling 1.2 percent the previous day. RUB/T
- The most-active rubber contract on the Shanghai futures exchange for January delivery SNRcv1 rose more than two percent to 12,860 yuan ($1,941.45) per tonne in an overnight trade.
- U.S.consumer spending rose more than expected in June as households bought goods and services, suggesting strength that appeared to be sustained early in the third quarter with auto sales surging to an eight-month high in July.
- The biggest U.S. automakers, General Motors Co GM.N and Ford Motor Co F.N , reported July U.S.sales that disappointed Wall Street on Tuesday but results were strong overall for the industry despite fears its long growth spurt may soon be over.
- Japanese Prime Minister Shinzo Abe’s cabinet approved 13.5 trillion yen ($132 billion) in fiscal measures on Tuesday even as the central bank fought market speculation that it is preparing to put the brakes on monetary stimulus for the world’s third-biggest economy.
MARKET NEWS
- The U.S. currency slid to a 3-week trough against the yen, pressured by expectations the Federal Reserve would delay raising interest rates after soft U.S.economic data and as the Japanese government approved a largely expected set of stimulus measures.
- Japan’s benchmark Nikkei stock average (XC0009692440) fell more than one percent in Wednesday trade, after Wall Street suffered its worst day in nearly a month after data indicated inflation was still below the Fed’s 2 percent target. MKTS/GLOB
- U.S. crude oil fell on Tuesday to end below $40 a barrel for the first time since April as persistent worries of both a crude and refined fuel glut and a slide in U.S.equities offset an early boost from a weak dollar.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
- 0145 China Caixin services PMI Jul
- 0750 France Markit services PMI Jul
- 0755 Germany Markit services PMI Jul
- 0800 Euro zone Markit services PMI Jul
- 0900 Euro zone Retail sales Jun
- 1215 U.S. ADP national employment Jul
- 1400 U.S. ISM non-manufacturing PMI Jul
($1 = 101.2100 yen)
($1 = 6.6239 Chinese yuan renminbi)
(Reporting by Yuka Obayashi; Editing by Michael Perry)
