Benchmark TOCOM rubber futures fell on Friday (Oct 3) to put the contract on course for its biggest weekly decline since January, hit by worries of a slowdown in economic growth in top buyer China and lower crude oil prices.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for March delivery had dropped 1.3 yen to 174.1 yen per kg by 0014 GMT, setting it on track for a 6.1- percent weekly fall – its deepest since the week to Jan. 10.
The benchmark contract finished 1 yen lower on Thursday (Sept 2).
China is likely to see annual growth of at least 7 percent over the next five years as it rebalances its economy to lift domestic demand, the Asian Development Bank’s new chief economist said on Thursday (Sept 2).
Consumer confidence in Thailand dropped in September for the first time since May’s military coup, a university survey showed on Thursday (Sept 2), adding to evidence that authorities haven’t yet been able to get an economic recovery on track.
The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, but other data on Thursday showed weaker factory orders in August even after stripping out volatile transportation figures.
MARKET NEWS
The U.S. dollar was quoted around 108.68 yen early on Friday (Sept 3), taking back some losses after falling the previous day when weak global manufacturing data and a U.S. Ebola health scare sent investors in search of safer assets.
Japan’s benchmark Nikkei stock average was mostly steady in Friday (Sept 3) trade.
Copper and aluminium slid to fresh multi-month lows on Thursday (Sept 2) after the European Central Bank’s monthly meeting failed to inspire confidence about future growth, stoking fears about metals demand.
Global oil prices deepened a three-month rout on Thursday (Sept 2) to hit their lowest since mid-2012, fuelled by growing concerns over weak demand, abundant supply and signs that Saudi Arabia is in no hurry to cut output.
(Reuters, September 3, 2014)
