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Tokyo rubber futures rebound on weaker yen, Fed awaited (June 19)

TOKYO, June 19 (Reuters) – Benchmark Tokyo rubber futures rebounded on Wednesday on a weaker yen and firmer share prices, but there was caution ahead of the outcome of the Federal Reserve’s meeting as investors look for more insight on U.S. monetary policy.

FUNDAMENTALS

* The benchmark Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery was trading up 1.35 percent at 239.7 yen per kg as of 0036 GMT.

* The contract climbed as high as 241.5 yen in early trade.

* The Federal Reserve meeting, which started on Tuesday, has taken on greater significance since Fed Chairman Ben Bernanke said in May that stimulus could be scaled back if the U.S. economy gains momentum. The Fed will issue its policy statement on Wednesday, followed by a news conference by Bernanke.

* European car sales plunged last month to their lowest May level in two decades, eroding manufacturers’ hopes for a recovery this year after a rebound the month before.

* China’s home price rises slowed for a second straight month in May from the previous month, in a sign that Beijing’s attempts to bring stability to a frothy property market are having some effect.

TOCOM Rubber Futures Prices on Wednesday, June 19, 2013 (yen/kilogram)

Month

Last Settlement Price

Open

High

Low

Current

Change

Volume

Jun 2013

230.0

230.0

232.0

229.9

232.0

+2.0

7

Jul 2013

232.3

232.8

236.2

232.8

236.2

+3.9

21

Aug 2013

232.9

234.7

237.5

234.6

236.5

+3.6

19

Sep 2013

233.5

234.1

238.3

234.1

236.6

+3.1

57

Oct 2013

234.9

235.5

239.9

235.5

238.5

+3.6

116

Nov 2013

236.5

237.4

241.5

236.6

240.0

+3.5

2,477

Total

 

2,697

MARKET NEWS

* The U.S. dollar rose on Tuesday against the yen for a second straight session as some traders bet the Federal Reserve may signal it is almost ready to reduce its bond buying program aimed at propping up the economy.

* Japan’s Nikkei share average rose to a one-week high on Wednesday, helped by a second-straight day of gains on Wall Street as investors bet that the Federal Reserve would temper worries about an imminent roll back of its stimulus programme.

* Oil prices ended slightly higher on Tuesday in sluggish trading as the market awaited the Federal Reserve’s policy statement on Wednesday that is expected to show whether it will reduce its monetary stimulus. The program has been largely supportive of oil prices.

DATA EVENTS

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

1800 U.S. Fed funds target rate Dec USFOMC=ECI

2330 Japan Reuters Tankan DI Jun JPRTAN=ECI

(Reporting by Yuka Obayashi; Editing by Ed Davies)

Source: Reuters

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