Benchmark TOCOM rubber futures fell to a one-week low on Thursday (Nov 27), weighed down by soft U.S. economic data and weaker oil prices.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery had dropped 1.6 yen to 200.6 yen per kg, the lowest since Nov 19, by 0055 GMT, after losing 1.9 yen on Wednesday (Nov 26) on softer oil prices.
U.S. consumer spending rose modestly in October and a measure of business spending plans fell for a second straight month, suggesting some slowing in the pace of economic growth.
OPEC Gulf oil producers will not propose an output cut on Thursday (Nov 27), reducing the likelihood of joint action by OPEC to prop up prices that have sunk by a third since June.
MARKET NEWS
Oil benchmark Brent futures settled down 58 cents at $77.75 a barrel on Wednesday (Nov 27), while U.S. crude fell 40 cents to $73.69, having hit a low of $73.30.
The dollar fell as the disappointing U.S. data raised concern that the world’s biggest economy is losing momentum in the final months of 2014. The dollar was quoted around 117.52 yen early on Thursday (Nov 27).
Japan’s benchmark Nikkei stock average declined 0.4 percent in Thursday (Nov 27) trade, after global equity markets edged higher on hopes for more stimulus from the European Central Bank and the prospect that stocks may be a better investment than other alternatives.
Copper fell to a three-week low on Wednesday (Nov 27).
Reuters, November 27, 2014
