SINGAPORE, Sept 16 (Reuters) –
- Singapore rubber futures rose on Monday supported by stronger global demand outlook and firmer oil prices, although softer economic data from top consumer China put a ceiling on prices.
- The front-month October rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 188.6 U.S. cents per kg, up 1.8%.
- The Osaka Futures Exchange is closed for Respect for the Aged Day in Japan. The market will resume trading on Sept. 17.
- The Shanghai Futures Exchange is closed on Sept. 16 and 17 for the Middle Autumn Festival in China.
- Expectation of lower global interest rates, combined with calls for additional Chinese economic stimulus, has spurred buying interest in both natural and synthetic rubber markets, Japan Exchange Group said in a report on Monday.
- Market sentiment remained bullish as prices approached the June high of 187 U.S. cents, said Japan Exchange Group.
- Oil prices rose in Asian trade on Monday amid expectations of a U.S. interest rate cut this week, though gains were capped by persistent demand worries and weaker China data. O/R
- Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
- Goldman Sachs and Citigroup have lowered their full-year projections for China’s economic growth to 4.7%, after the world’s second-largest economy’s industrial output slowed to a five-month low in August.
- China’s retail sales and new home prices weakened further, bolstering the case for aggressive stimulus to shore up the economy and help it hit its annual growth target.
- The sluggish data released on Saturday echoed soft bank lending figures on Friday, underscoring the country’s weak growth momentum in the third quarter.
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu and Varun H K
Source:
Reuters
