TOKYO, Dec 13 (Reuters) – Key TOCOM rubber futures rose nearly 1 percent on Thursday on a weaker yen and after the U.S. Federal Reserve announced a new stimulus plan, its latest attempt to support the country’s struggling economy.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for May delivery <0#2JRU:> was changing hands 1.8 yen higher at 273.8 yen as of 0027 GMT. The benchmark contract rose as high as 274.1 yen, the highest since 275.5 hit on Oct. 5.
* Rubber has strengthened over the past month due to a weaker yen, which makes yen-denominated assets more affordable when purchased in other currencies.
* The U.S. Federal Reserve on Wednesday committed to monthly purchases of $45 billion in Treasuries on top of the $40 billion per month in mortgage-backed bonds it started buying in September. It also said it will keep its near-zero interest-rate program in place until the U.S. unemployment rate falls to 6.5 percent from its current 7.7 percent.
* India’s imports of natural rubber jumped 41 percent in November from a year earlier, to 22,748 tonnes, as lower overseas prices prompted tyre makers to turn abroad, the state-run Rubber Board said on Wednesday.
|
Month |
Last Settlement Price |
Open |
High |
Low |
Current |
Change |
Volume |
|
Dec 2012 |
257.1 |
258.5 |
259.5 |
257.4 |
257.4 |
+0.3 |
20 |
|
Jan 2013 |
258.0 |
257.9 |
260.2 |
256.5 |
256.5 |
-1.5 |
31 |
|
Feb 2013 |
260.4 |
261.8 |
263.0 |
257.2 |
257.8 |
-2.6 |
136 |
|
Mar 2013 |
264.9 |
265.4 |
267.5 |
263.1 |
264.2 |
-0.7 |
203 |
|
Apr 2013 |
268.2 |
268.8 |
271.2 |
266.4 |
267.6 |
-0.6 |
405 |
|
May 2013 |
272.0 |
273.0 |
274.8 |
270.1 |
271.8 |
-0.2 |
2,758 |
|
Total |
|
3,553 |
|||||
MARKET NEWS
* U.S. stocks ended nearly flat on Wednesday, giving up most of the day’s gains after Fed Chairman Ben Bernanke reiterated that monetary policy won’t be enough to offset damage from the “fiscal cliff.”
* The yen languished at eight-month lows against the dollar and euro on Thursday as markets expect the Bank of Japan to expand its own easing programme after the Federal Reserve surprised by explicitly linking policy to unemployment.
* Oil prices rose sharply on Wednesday, with Brent crude pushing toward $110 a barrel after the U.S. Federal Reserve announced plans for more monetary stimulus, while a Texas refinery fire lifted refined product futures.
* Japan’s Nikkei average climbed to an eight-month high in early trade on Thursday, led by exporters as the yen fell against the dollar on mounting expectations that the Bank of Japan will implement more aggressive monetary easing.
DATA EVENTS
* The following data is expected on Thursday: (Time in GMT)
– 1330 U.S. Weekly jobless claims
– 1330 U.S. Retail sales Nov
– 1330 U.S. Producer price index Nov
– 1500 U.S. Business inventories Oct
– European Council meeting, Brussels (Reporting by Osamu Tsukimori; Editing by Richard Pullin)
Source: Reuters
