TOKYO, Dec 13 (Reuters) – Benchmark TOCOM rubber futures steadied on Tuesday, after hitting their highest in nearly three years in overnight trade, as oil prices retreated from 18-month highs and Shanghai futures rubber prices fell.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: was up 0.3 yen, or 0.1 percent, at 256.3 yen ($2.23) per kg as of 0050 GMT, after touching the highest since Jan. 7, 2014 at 259.9 yen in overnight trade. RUB/T
The most-active rubber contract on the Shanghai futures exchange for May delivery SNRcv1 fell 95 yuan to 19,360 yuan per tonne in an overnight trade after reaching its highest level since since February 2014 in the previous session.
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Auto sales in China surged for a sixth consecutive month in November, an industry association said on Monday, as consumers rushed to buy cars amid uncertainty over whether a tax incentive will be extended beyond the end of the year.
The U.S. Federal Reserve is widely expected to hike interest rates for the first time in 2016 at a two-day meeting, with markets pricing in a nearly 100 percent chance of a quarter percentage point increase to the Fed’s target range of 0.25 to 0.50 percent.
MARKET NEWS
The U.S.dollar eased against the yen on Tuesday, coming off a 10-month high, as a surge in Treasury yields was tempered for the time being.
The dollar was down 0.2 percent at 114.85 yen JPY= in early Asia trade on Tuesday. FRX/
Oil rose to an 18-month high on Monday after OPEC and some of its rivals reached their first deal since 2001 to jointly reduce output to tackle global oversupply, though prices slipped late in the day.
Japan’s benchmark Nikkei stock average (XC0009692440) edged lower on Tuesday, as investors awaited the Fed’s meeting that begins later in session for clues on the outlook for U.S.monetary policy.
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
0200 China Industrial output Nov
0200 China Retail sales Nov
0200 China Urban investment Nov
0700 Germany Wholesale price index Nov
0930 Britain Consumer prices Nov
1000 Germany ZEW economic sentiment Dec
1000 Euro zone Employment Q3
1100 U.S. NFIB business optimism Nov
1330 U.S. Import prices Nov
1330 U.S. Export prices Nov Federal Reserve starts two-day policy meeting
($1 = 114.8600 yen)
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
