TOKYO, Nov 14 (Reuters) – Key TOCOM rubber futures rose on Wednesday, rebounding after prices sagged to a two-month low this week, but gains were limited due to worries about global demand being hampered by fragile U.S. and European economies.
FUNDAMENTALS
* The most-active Tokyo Commodity Exchange rubber contract for April delivery <0#2JRU:> traded 1.5 yen higher at 244.2 yen per kg by 0010 GMT, paring a 3.7 yen decline in the previous two sessions.
* The benchmark fell to a two-month low of 241.8 yen on Monday and again during Tuesday’s evening session, which is technically a part of Wednesday’s day trade.
* International Energy Agency in a report on Tuesday cut estimates for global oil demand in the last three months of this year and for growth in 2013.
* China’s new leaders will be unveiled on Thursday at the ruling communist party congress, setting the tone for economic reforms in the world’s most populous nation and the world’s biggest rubber consumer.
* General Motors and alliance partner PSA Peugeot Citroen have halted talks on a deeper tie-up amid misgivings about the French carmaker’s worsening finances and government-backed bailout, people familiar with the matter said.
MARKET NEWS
* Japan’s Nikkei share average edged up early Wednesday, but concerns about a potential U.S. fiscal crisis and Europe’s debt woes could cap gains.
* The euro hit a more than two-month low against the dollar and a one-month trough versus the yen on Tuesday, weighed down by delays in aid for debt-burdened Greece and persistent uncertainty about whether Spain will seek a bailout.
* Brent crude oil fell for a second day on Tuesday over concerns about lower demand in a well-supplied market and as the United States and Europe grappled with fragile economies.
DATA EVENTS
* The following data is expected on Wednesday: (Time in GMT)
1000 Euro zone Industrial production Sep
1330 U.S. Retail sales Oct
1330 U.S. Producer price index Oct
1500 U.S. Business inventories Sep
1900 Federal Open Market Committee minutes of Oct. 23-24 meeting
(Reporting by Risa Maeda; Editing by Ed Davies)
Source: Reuters
