Benchmark TOCOM rubber futures were steady early on Tuesday (Aug 5) as several financial markets were in a subdued tone amid a lack of major economic data and ahead of policy reviews by several central banks.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery was down 0.2 yen at 206.01 yen per kg by 0010 GMT, after finishing 1.7 yen lower on Monday (Aug 4).
The Bank of Japan is set to maintain its massive asset purchases and its optimistic view on the economic outlook this week, unfazed by a slew of weak data that has heightened expectations of a deeper-than-expected contraction in the second quarter.
Car sales in Germany bounced back in July, data showed on Monday (Aug 4), posting the second-highest monthly gain this year and suggesting a further pick-up in second-half demand in Europe’s biggest auto market.
China can build whatever it wants on its islands in the South China Sea, a senior Chinese official said on Monday, rejecting proposals ahead of a key regional meeting to freeze any activity that may raise tensions in disputed waters there.
MARKET NEWS
The U.S. dollar was quoted around 102.56 yen early on Tuesday (Aug 5), steady ahead of policy reviews by central banks in Australia, Japan and Europe.
Japan’s benchmark Nikkei stock average edged up 0.1 percent in Tuesday (Aug 5) trade, after U.S. equities finished higher on Monday (Aug 4).
Oil prices on both sides of the Atlantic climbed on Monday (Aug 4), as investors shifted their attention from worries about swelling supplies to concerns about ongoing violence in Libya and other global hot spots.
Reuters, August 5, 2014
