TOKYO, Dec 11 (Reuters) – Key TOCOM rubber futures rose to a two-month high on Tuesday, supported by hopes the U.S. Federal Reserve could unleash more stimulus at the end of its two-day policy meeting this week
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for May delivery <0#2JRU:> was quoted 0.8 yen higher at 268.3 yen as of 0043 GMT. The benchmark contract rose as high as 269.2 yen, the highest since 271.0 hit on Oct. 12.
* Indian natural rubber futures are likely to edge higher this week on bargain hunting, driven by an upside in overseas markets and as demand from tyre makers improved in local spot markets.
* At the end of the two-day meeting which begins on Tuesday, the Fed is expected to announce it will buy $45 billion per month of longer-dated Treasuries beginning in January to replace the current Operation Twist programme, which expires at the end of December.
MARKET NEWS
* U.S. stocks edged higher on Monday as technology shares bounced back after recent weakness and McDonald’s posted strong monthly sales.
* The euro extended its recovery from a two-week low on Tuesday as nerves calmed over Italy’s latest political turmoil and the prospects of more stimulus from the Federal Reserve pinned down the dollar.
* Brent oil prices rose slightly on Monday after Chinese data showed oil imports increased last month, a sign of robust demand for commodities in the world’s No. 2 oil consuming country.
* Japan’s Nikkei share average opened lower on Tuesday amid investor caution over signs that the market is overbought while volume may be subdued ahead of major economic events overseas.
DATA EVENTS
* The following data is expected on Tuesday: (Time in GMT)
– 1000 Germany ZEW survey Dec
– 1245 U.S. ICSC weekly U.S. chain store sales
– 1330 U.S. International trade Oct
– 1355 U.S. Redbook weekly retail sales
– 1500 U.S. ISM semi-annual forecasts
– 1500 U.S. Wholesale inventories Oct
– 1500 U.S. IBD/TIPP Consumer confidence index Dec
– Federal Open Market Committee starts first day of a two-day interest rate policy meeting
(Reporting by Osamu Tsukimori; Editing by Ed Davies)
Source: Reuters
