TOKYO, Nov 30 (Reuters) – Key TOCOM rubber futures rose on Friday for a second straight session, boosted by a weaker yen and optimism over global demand after data showing faster than expected U.S. economic growth in the third quarter.
FUNDAMENTALS
* The most-active Tokyo Commodity Exchange rubber contract for May delivery <0#2JRU:> was up 2.7 yen, or 1.1 percent, at 258.5 yen per kg as of 0035 GMT. The benchmark contract is down about 1 percent for the week.
* The U.S. economy grew faster than initially thought in the third quarter as restocking by businesses provided a big boost, but consumer and business spending were revised lower in a sobering reminder of the recovery’s underlying weakness.
GDP expanded at a 2.7 percent annual rate, the Commerce Department said on Thursday, with export growth also helping to offset the weakest consumer spending and first drop in business investment in more than a year.
* Japan’s industrial output unexpectedly rose in October in a sign the world’s third-largest economy may have seen the worst of the effects of weak global trade and a diplomatic row with China.
* India’s gross domestic product data for the last quarter is due later on Friday, with a poll suggesting July-September growth staying near a three-year low.
* U.S. auto sales are expected to rebound robustly in November, potentially hitting their strongest pace in more than four years, as consumers in the Northeast returned to dealerships after super storm Sandy hurt demand in late October.
* EU trade ministers overcame resistance from the car industry on Thursday and agreed to start negotiations to create a free-trade pact with Japan, Europe’s most ambitious step so far in a strategy to tie up deals with the world’s biggest economies.
MARKET NEWS
* Heavy rains disrupted rubber tapping in Thailand and Indonesia, but recent weakness in global benchmark Tokyo futures and rising inventories in main consumer China weighed on tyre grade prices, dealers said on Thursday.
* RSS3, the benchmark grade in Southeast Asia, was offered at $3 a kg for January delivery on Thursday, having been traded at the same level last week. STR20 changed hands at $2.88 to $2.90 a kg last week.
* The dollar edged higher at around 82.07 yen, pulling away from a one-week low of 81.67 yen set on Wednesday.
* Japan’s Nikkei share average rose in early trade on Friday as a weaker yen boosted expectations for improved earnings by exporters.
* Oil prices rose on Thursday for the first time this week as investors grew more optimistic that U.S. lawmakers will resolve a budget fight and increasing Middle East tensions stoked fear about potential disruptions to oil supplies.
DATA EVENTS
* The following data is expected on Friday:
0500 Japan Construction orders Oct
0530 India GDP Q2
0700 Germany Retail sales Oct
0745 France Consumer spending Oct
0900 Italy Unemployment rate Oct
1000 Euro zone Inflation Nov
1100 Brazil GDP Q3
1445 U.S.
Chicago PMI Nov
1930 U.S.
CFTC commitment of traders data (Reporting by Risa Maeda)
Source: Reuters
