TOKYO, Dec 14 (Reuters) – Benchmark TOCOM rubber futures shot to a nearly three-year high on Wednesday, extending gains into a fourth straight session on the back of stronger Shanghai futures, although the contract gave up some overnight gains on profit-taking.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: was up 5.9 yen, or 2.3 percent, at 265.6 yen per kg as of 0031 GMT. It surged to the highest since December 2013 at 273.6 yen in overnight trade. RUB/T
The most-active rubber contract on the Shanghai futures exchange for May delivery SNRcv1 rose 180 yuan to 19,790 yuan per tonne in an overnight trade after touching a high above key 20,000 yuan mark.
Crude rubber inventories at Japanese ports stood at 5,969 tonnes as of Nov. 30, down 7.2 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Tuesday.
The U.S. Federal Reserve inaugurates the Trump era this week with a near-certain interest rate increase and new economic forecasts providing a first glimpse into whether the U.S.election has reshaped the central bank’s growth and inflation outlook.
Big Japanese manufacturers’ sentiment improved for the first time in six quarters in the three months December to hit a one-year high, a closely watched central bank survey showed, as stock gains and yen falls brightened prospects for the export-reliant economy.
MARKET NEWS
The U.S. dollar was up 0.15 percent against the yen JPY= at 115.19 yen on Wednesday after hitting a 10-month high of 116.12 yen on Monday. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was steady on Wednesday after all three major U.S.stock indexes hit records and the Dow ended fewer than 100 points from the magical 20,000 mark.
The rally was driven by speculation that a Trump Administration will implement more debt-financed fiscal stimulus and cut regulation. MKTS/GLOB
Oil prices edged off earlier gains to end Tuesday nearly unchanged, as the support from OPEC’s plan to limit production were undercut by an energy watchdog’s assessment of how much those nations are currently producing.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
1000 Euro zone Industrial production Oct
1330 U.S. Retail sales Nov
1415 U.S. Industrial production Nov
1500 U.S. Business inventories Oct
1900 Federal Reserve releases policy statement
1930 Fed Chair Janet Yellen holds news briefing
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
