Benchmark TOCOM rubber futures ticked higher on Thursday (Jun 5), after tumbling to their lowest level in more than four years earlier this week, as gains in Japanese equities and hopes that a rapid economic slowdown in top buyer China has stopped, boosted sentiment for the soft commodity.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for November delivery JRUc6 0#2JRU: was up 0.7 yen at 194.1 yen per kg by 0040 GMT, after finishing 0.1 yen lower on Thursday (Jun 5).
China has stepped up efforts to stop quarterly economic growth falling towards 7 percent and thinks it has been successful for now after preliminary signs that a rapid slowdown has been arrested, sources involved in policy discussions say.
U.S. companies hired far fewer workers than expected in May, but an acceleration in services sector growth supported views the economy was regaining strength after sagging early this year.
Thailand’s military government is to shelve a plan to sell 200,000 tonnes of rubber from stocks and will focus on measures to increase domestic consumption to shore up prices, government officials said on Wednesday (Jun 4).
MARKET NEWS
The U.S. dollar was quoted around 102.62 yen early on Thursday (Jun 5), stabilising after having gained more than 1 percent since last Friday (Jun 6).
Japan’s benchmark Nikkei stock average rose 0.3 percent in Thursday (Jun4) trade, as U.S. stocks edged up on Wednesday (Jun 4) with the S&P 500 ending at a new record.
Brent and U.S. crude ended lower on Wednesday (Jun 4) as hopes that a peace plan from Ukraine’s president-elect might help ease the crisis with Russian separatists cooled oil’s earlier rally.
Reuters, June 5, 2014
