-5 C
New York
Saturday, January 22, 2022

Tokyo rubber futures up for 3rd day, helped by weaker yen

Tokyo rubber futures up for 3rd day, helped by weaker yenTOKYO, Nov 21 (Reuters) – Key TOCOM rubber futures inched up on Wednesday, marking a third day of gains as the yen hit a seven-month low against the dollar, although gains were limited by concerns over slowing global demand.

FUNDAMENTALS

* The key Tokyo Commodity Exchange rubber contract for April delivery was traded 0.3 yen, or 0.1 percent, higher at 256.3 yen as of 0051 GMT. The benchmark contract hit a near three-week high of 257.7 yen on Tuesday, helped by a rebound in Japanese equities and a weaker yen.

* Concerns about slowing demand in China, the world’s biggest rubber consumer, persists as weak demand from downstream industries and high stocks have pressured domestic rubber prices.

* Indian natural rubber futures are likely to remain steady this week, tracking some recovery in the world market and as farmers hold back produce on hopes of better prices. However, a pick-up in tapping in the top producing state of Kerala and imports are expected to weigh on prices.

MARKET NEWS

* Wall Street halted its two-day rally on Tuesday, after Federal Reserve Chairman Ben Bernanke said the central bank lacks tools to cushion the U.S. economy from the impact of the “fiscal cliff.”

* The yen slumped to seven-month lows against the dollar On Wednesday and fell nearly as far against the euro on views Japan’s central bank will be pushed into implementing more radical monetary expansion policies.

* Oil fell from a one-month high on Tuesday amid signs of a ceasefire that would end a week of rocket attacks and air strikes between Palestinians and Israelis.

* The Nikkei share average rose to a two-month high in early trade on Wednesday, led by exporters after the yen hit a seven-month low versus the dollar on expectations the Bank of Japan will be pushed to take aggressive stimulus action under a likely new government.

DATA EVENTS

* The following data is expected on Wednesday: (Time in GMT)

– 1330 U.S. Weekly jobless claims

– 1358 U.S. Markit Manufacturing Flash PMI Nov

– 1455 U.S. TR/U Mich final sentiment index Nov

– 1500 U.S. Leading indicators Oct

– 1630 U.S. EIA weekly petroleum status report

(Reporting by Osamu Tsukimori; Editing by Ed Davies)

Source: Reuters

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,076FansLike
12,893FollowersFollow
751FollowersFollow
- Advertisement -

Latest Articles

Popular Articles