TOKYO, Nov 13 (Reuters) – Key TOCOM rubber futures inched up on Tuesday after hitting a two-month low the day before, taking cues from rising equity markets, although lingering worries over sluggish global demand capped gains.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for April delivery <0#2JRU:> was changing hands 0.9 yen higher at 245.2 yen as of 0010 GMT, after settling down 0.9 the previous day. The benchmark contract on Monday fell to its lowest since Sept. 14 at 241.8 yen.
* Gains were limited as concerns about the U.S. “fiscal cliff” – a series of budget cuts and tax hikes that will start to go into effect in the new year – have investors cautious because of the potential for harm to global economic growth.
* The rise also came after industry data showed that crude rubber inventories at Japanese ports declined to 5,833 tonnes by Oct. 31, having fallen 411 tonnes in the past 10 days.
The stock had dropped to a two-year low of 5,706 tonnes early in the month.
MARKET NEWS
* Japan’s Nikkei share average edged up in early Tuesday trade after falling for six straight sessions, but gains may be limited on concerns about U.S. fiscal policy.
* The euro was unchanged against the dollar on Monday and nearing a recent two-month low in thin holiday trading, weighed down by uncertainty as to whether or not Greece will receive a new round of bailout money to help pay off its debt.
* Oil slipped in choppy trading on Monday, as markets balanced concerns about U.S. fiscal problems against geopolitical tensions and strong oil demand in China.
DATA EVENTS
* The following data is expected on Tuesday: (Time in GMT)
– – 1230 US NFIB business optimism/Oct
– 1245 US ICSC chain stores
– 1355 US Redbook retail sales
– 1500 US IBD economic optimism (Reporting by Osamu Tsukimori; Editing by Joseph Radford)
Source: Reuters
