TOKYO, Dec 6 (Reuters) – Key TOCOM rubber futures were steady on Thursday, off a seven-week high hit earlier in the session, as weak economic data from the United Sates and Europe trimmed optimism about demand from China, the world’s biggest rubber consumer.
FUNDAMENTALS
* The most-active Tokyo Commodity Exchange rubber contract for May delivery <0#2JRU:> was up 0.8 yen or 0.3 percent at 265.9 yen per kg as of 0030 GMT.
* The benchmark contract earlier hit a high of 266.2 yen, its loftiest since Oct. 15.
* Chinese shares had their best day in three months on Wednesday, lifting Hong Kong to its highest since August 2011 after comments by the new head of the Communist Party about the government’s economic priorities boosted optimism.
* U.S. private sector hiring took a heavy hit in November due to the impact of storm Sandy that ravaged consumers and businesses in the north east, but the huge service sector continued to expand albeit at a modest pace.
* Data showed euro zone shoppers cut back on spending by the biggest margin in six months in October, while purchasing manager figures pointed to another quarter of recession.
* The European Central Bank’s policy meeting is due on Thursday, which will be watched for any signs on next year’s policy path.
MARKET NEWS
* Japan’s Nikkei average climbed to a seven-month high in early trade on Thursday, buoyed by a weaker yen on persistent speculation the central bank will adopt bolder action.
* The dollar traded at around 82.40 yen, recovering toward a near eight-month high of 82.82 yen hit in late November.
* U.S. crude held below $88 per barrel on Thursday, nursing losses from the prior session after data showed a jump in gasoline stocks, while weak hiring figures from the top oil consumer and bleak euro zone retail sales fanned demand worries.
DATA EVENTS
* The following data is expected on Thursday:
1000 Euro zone Revised Q3 GDP
1100 Germany Industrial orders Oct
1200 Britain Bank of England rate decision
1245 Euro zone ECB rate decision
1330 Euro zone ECB news conference
1330 U.S. Weekly jobless claims (Reporting by Risa Maeda; Editing by Himani Sarkar)
Source: Reuters
