TOKYO, Oct 30 (Reuters) – Key TOCOM rubber futures eased on Tuesday, in line with oil futures, although the market was supported ahead of an expected announcement of stimulus measures by the Bank of Japan later in the day.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for April delivery <0#2JRU:> was down 2.6 yen, or 1 percent, at 255.6 yen as of 0016 GMT.
The benchmark contract hit a 10-day intraday high of 264.5 yen on Monday, on expectations that the Bank of Japan will unveil more economic stimulus steps when it makes a policy announcement on Tuesday, although it then eased to close lower.
* Indian natural rubber futures are likely to edge lower this week on subdued demand from tyre makers, which are trimming local purchases to make room for cheaper imported rubber.
* Hurricane Sandy, one of the biggest storms ever to hit the United States, roared ashore with fierce winds and heavy rain on Monday near the gambling resort of Atlantic City, New Jersey, after forcing evacuations, shutting down transportation and interrupting the presidential campaign.
MARKET NEWS
* U.S. stock index futures fell in a shortened session on Monday and cash equity trading was cancelled as powerful Hurricane Sandy bore down on the U.S. East Coast, closing equity trading for Tuesday.
* The yen held near four-month lows versus the dollar on Tuesday as markets counted down to a certain policy easing by the Bank of Japan, although investors fear it will again stop short of the bold action the economy needs.
* U.S. gasoline futures rallied while benchmark crude oil prices dipped on Monday as Hurricane Sandy slowed East Coast fuel deliveries to a crawl, with major refineries shut, pipelines idle and ports closed.
* Japan’s Nikkei share average edged higher in early trade on Tuesday ahead of the much-anticipated policy announcement by the Bank of Japan, which is widely expected to ease monetary policy.
DATA EVENTS
* The following data is expected on Tuesday: (Time in GMT)
– Bank of Japan announces outcome of policy meeting
– 0855 Germany Unemployment rate Oct
– 1000 Euro zone Business climate Oct
– 1000 Euro zone Economic sentiment Oct
– 1145 U.S. ICSC weekly chain store sales
– 1255 U.S. Redbook weekly retail sales
– 1300 U.S. S&P/Case-Shiller Home Price index
– 2030 U.S. API weekly crude stocks (Reporting by Osamu Tsukimori; Editing by Edmund Klamann)
Source: Reuters
