Benchmark TOCOM rubber futures edged down on Tuesday (Aug 19) as concerns about demand in top buyer China offset the impact of gains in Japanese equities and a weaker yen.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery had fallen 0.5 yen to 197.0 yen per kg by 0016 GMT, after finishing 0.6 yen higher on Monday (Aug 18).
China’s new home prices fell in July for a third straight month with price declines spreading to a record number of cities, data showed on Monday, underlining a worsening property downturn that is increasingly dragging on the broader economy.
Thai rubber producers want the military government to change the system of taxes on exports of the soft commodity to help them compete with rivals such as Malaysia and Indonesia, an industry body said on Monday.
U.S. homebuilder sentiment rose in August to its highest since January as labour market conditions improved, data from the National Association of Home Builders showed on Monday (Aug 18).
MARKET NEWS
The U.S. dollar was quoted around 102.63 yen early on Tuesday (Aug 19), gaining after the threat of increased tensions in Ukraine appeared to diminish and after positive U.S. housing data.
Japan’s benchmark Nikkei stock average rose 0.8 percent in Tuesday (Aug 19) trade, following Monday’s (Aug 18) surge on Wall Street.
London copper edged higher on Monday as some investors regarded recent losses as overdone.
Brent crude oil shed nearly $2 a barrel to reach its lowest price in over a year on Monday (Aug 18) as investor concerns over conflict in Ukraine and Iraq eased, and as higher Libyan oil output added to already ample supplies.
(Reuters, August 19, 2014)
