By Yium Tavarolit
The Movements of Global Stocks, Finance and Energy
Japan’s stocks stayed in an uptrend during the week as U.S. reports added to optimism in the global economic recovery, and the yen continued weakening further against the dollar. The Nikkei 225 index closed higher at 12,283.62, but the Shanghai Composite index fell slightly to 2,318.61 on Friday. Hong Kong’s Hang Seng index finished the week higher at 23,091.95, and Australia’s S&P/ASX200 index ended higher at 5,123.44 on the same day.
Major stock markets in Europe extended their uptrends from the previous week on the back of an improvement in market sentiment and investor confidence, after employers in the U.S. increased their payrolls more than forecast, and optimism mounted that central banks will continue to stimulate their economies. Germany’s DAX 30 index gained 0.6% to 7,986.47 and rose 3.6% on a weekly basis. France’s CAC 40 index closed 1.2% higher at 3,840.15, closing out the week with a 3.8% gain, and the U.K.’s FTSE 100 index added 0.7% to 6,483.58, sending it 1.7% higher on the week.
Also, Wall Street stayed in an uptrend during the week as reports showed that U.S. employers added more jobs, Chinese exports surged and Japan’s economy returned to growth. The Dow Jones Industrial Average index rose 67.58 points, or 0.5%, to 14,397.07 on Friday. The Standard & Poor’s 500-stock index added 6.92 points, or 0.5%, to 1,551.18, and the Nasdaq Composite index added 12.28 points, or 0.4%, to 3,244.37.
The dollar strengthened against the euro, the Swiss franc, the yen during the week and stayed at around EUR0.7670, CHF0.9509, and Y96.02 on Friday whereas the Chinese yuan, Thai baht, Indonesian rupiah, and Malaysian ringgit strengthened against the dollar at around CNY6.2145, THB29.73, IDR9,682, and MYR3.1045 respectively.
Positive U.S. jobs data also lifted light, sweet crude for April delivery to settle 39 cents, or 0.4%, higher at $91.95 a barrel on the New York Mercantile Exchange (Nymex) on Friday, but it was still lower than the previous week’s average price, according to Dow Jones Newswires.
Rubber Markets
Most of rubber futures and physical rubber markets in Asia rebounded and climbed up steadily throughout the week as the Dow Jones Industrial Average index rose, and the yen weakened against the dollar for second consecutive week. Moreover, Japan’s Nikkei 225 index and crude oil futures on Nymex reversed its downtrend from the previous week and closed higher on Friday.
A decline in natural rubber (NR) supply in Thailand, Indonesia, and Malaysia curbed by the dry wintering season and an improvement in technical charts and market confidence were also supportive factors from market fundamentals that helped stop a fall in NR prices during the week. It is noticeable that a volatile downtrend on Shanghai Stock Exchange Composite index still pressed down NR prices on Shanghai rubber futures for third consecutive week.
The table below shows a significant rebound on IRCo’s DCP, Tokyo rubber futures, physical rubber markets in Thailand, Indonesia, and Malaysia on Friday compared with an earlier Friday whereas Shanghai rubber futures still moved in the opposite direction.
|
Description |
8-Mar-13 |
1-Mar-13 |
Change |
Unit |
|
IRCo’s DCP |
297.00 |
293.60 |
3.40 |
US cents/kg |
|
TOCOM/RSS3 * |
|
|
|
|
|
– Mar. |
279.90 |
267.00 |
12.90 |
Yen/kg |
|
– Aug. |
298.20 |
284.10 |
14.10 |
Yen/kg |
|
– Volume |
10,453 |
14,743 |
-4,290 |
Lots |
|
SHFE/RSS3 ** |
24,010 |
24,035 |
-25 |
Yuan/ton |
|
AFET/RSS3 |
|
|
|
|
|
– Apr. |
90.35 |
88.50 |
1.85 |
THB/kg |
|
– Oct. |
94.55 |
93.20 |
1.35 |
THB/kg |
|
– Volume |
432 |
286 |
146 |
Lots |
|
SMR20 *** |
301.00 |
295.00 |
6.00 |
US cents/kg |
|
SIR20 *** |
291.00 |
286.00 |
5.00 |
US cents/kg |
|
RRIT |
|
|
|
|
|
– RSS3 |
90.25 |
89.00 |
1.25 |
THB/kg |
|
– STR20 |
86.50 |
87.05 |
-0.55 |
THB/kg |
|
– USS3 |
80.90 |
78.40 |
2.50 |
THB/kg |
|
– Conc. Latex |
61.85 |
60.60 |
1.25 |
THB/kg |
|
– Field Latex |
80.00 |
77.00 |
3.00 |
THB/kg |
|
Notes: * the day sessions ** the most active month is Sep. *** offers, fob prices on 1 Mar. for Mar. & Apr. deliveries, and on 8 Mar. for Apr. & May deliveries |
||||
IRCo’s technical MACD and Signal Line improved slightly in negative territory on Friday while its RSI rose from 9.98% in an earlier Friday to 23.21% on Friday as some market players returned to long positions during the week on the back of a consecutive rise in U.S. stocks and a weaker yen against the dollar for second consecutive week in particular.
IRCo’s technical charts signal that NR prices are likely to improve further in the coming week if Wall Street continues its rise, and the yen remains weak in the coming week. The current issue is weak Shanghai stocks, which still undermine market players’ confidence on Shanghai rubber futures.
Source: IRCo
