Key TOCOM rubber futures snapped three days of gains to head lower on Thursday (May 15), pulling back from a two-week high due to a stronger yen and concerns about the impact of a slowing Chinese economy.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for October delivery was trading 1.3 yen lower at 204.8 yen as of 0017 GMT. The benchmark hit a high of 207.0 yen on Wednesday (May 14), the strongest since May 2.
China might miss its economic growth target for the first time in 15 years as data points to a sharper-than-expected loss of momentum and top leaders are talking about a “new normal” of slower growth.
MARKET NEWS
U.S. stocks fell on Wednesday (May 14), with the Dow and S&P 500 retreating from recent record highs, as small caps resumed their sell-off and consumer discretionary shares lagged.
The greenback dropped 0.41 percent to 101.83 yen.
Global oil prices rose on Wednesday as a draw on U.S. crude stocks at the Cushing, Oklahoma, contract delivery point and gasoline stocks pushed Brent and U.S. crude to three week highs.
Japan’s Nikkei share average extended declines, down 1.16 percent.
Reuters
