Benchmark TOCOM rubber futures rose on Thursday (Jul 31), putting the contract on track to eke out a monthly gain, as stronger equities offset lower crude oil prices.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery rose 1.3 yen to 212.7 yen per kg by 0019 GMT, putting the contract on track for a monthly gain of nearly 1 percent.
The contract finished 1.4 yen lower on Wednesday (Jul 30).
Goodyear Tire & Rubber Co, the biggest U.S. tyre maker, reported lower-than-expected quarterly revenue on Wednesday (Jul 30) as it sold fewer tires to vehicle makers in North America and Latin America.
Small quantities of physical tyre grades were sold at higher prices this week following gains in benchmark Tokyo futures, but top consumer China was on the sidelines while a Muslim holiday also curbed activity, dealers said on Wednesday (Jul 30).
The Federal Reserve on Wednesday reaffirmed it was in no rush to raise interest rates, even as it upgraded its assessment of the U.S. economy and expressed some comfort that inflation was moving up toward its target.
Japan could be flirting with recession after the weakest factory output since 2011, which, following a surprising fall in exports last week, could pressure the central bank to ease policy and complicate a decision on whether to raise taxes.
MARKET NEWS
The U.S. dollar was quoted around 102.81 yen early on Thursday (Jul 31), dipping after hitting a four- month high on Wednesday (Jul 30).
Japan’s benchmark Nikkei stock average rose 0.6 percent in Thursday (Jul 30) trade, rising for a fifth day in a row as strong corporate results continued to support the index.
Oil prices tumbled on Wednesday (Jul 30), with Brent leading the decline weakened by excess supplies in Europe and Asia while U.S. crude followed suit despite a larger-than-expected drop in nationwide stockpiles.
(Reuters, July 31, 2014)
