TOKYO, Aug 23 (Reuters) – Benchmark TOCOM rubber futures edged down on Tuesday, falling to a 1-1/2 week low as weaker oil prices and an overnight drop in Shanghai futures reduced appetite for risk.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery JRUc6 0#2JRU: was down 0.7 yen, or 0.5 percent, at 154.4 yen ($1.54) per kg as of 0042 GMT.Earlier in the session, it touched its lowest since Aug. 12 at 154.0 yen.
The most-active rubber contract on the Shanghai futures exchange, for January delivery SNRcv1 , fell 135 yuan to 12,715 yuan ($1,912.75) per tonne in overnight trade.
Mercedes-Benz sales in China may slow in the second half of 2016 while the company ramps up production of its new E-Class model, Daimler’s DAIGn.DE China head said on Monday.
Volkswagen VOWG_p.DE said it faced production delays at more than half its German plants because of a row with two suppliers that analysts estimate may cost the carmaker tens of millions of euros.
MARKET NEWS
Oil settled down more than 3 percent on Monday, retreating from last week’s two-month highs, on worries about burgeoning Chinese fuel exports, more Iraqi and Nigerian crude shipments and a rising U.S.oil rig count.
The U.S.dollar was mostly flat against a basket of major currencies on Monday on hesitation to make bets ahead of a speech from the Federal Reserve Chair on Friday.
The dollar was up 0.06 percent against the yen at 100.26 yen JPY= early on Tuesday. FRX/
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
0700 France Markit manufacturing PMI flash Aug
0730 Germany Markit manufacturing PMI flash Aug
0800 Euro zone Markit manufacturing PMI flash Aug
0800 Euro zone Markit services PMI flash Aug
1345 U.S. Markit manufacturing PMI flash Aug
1400 Euro zone Consumer confidence flash Aug
1400 U.S. New home sales Jul
($1 = 100.1600 yen) ($1 = 6.6475 Chinese yuan renminbi)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
