This entry was posted on Wednesday, September 30th, 2009 at 7:12 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
TOKYO, Sept 30 (Reuters) – Tokyo rubber futures extended the previous day’s 2.8 yen gain on Wednesday as a recovery in the dollar above 90 yen encouraged buying.
FUNDAMENTALS
* The Tokyo Commodity Exchange rubber contract for March delivery <0#JRU:> was at 198.5 yen per kg at 0041 GMT, up 1.3 yen or 0.7 percent from the previous day’s close.
* The contract rose as high as 199.5 yen, the highest for any benchmark since Sept. 18, during the night session.
* A weaker yen inflates the value of yen-priced futures.
* There is uncertainty about demand, particularly from China, the world’s largest rubber consumer, given the rise in inventories there and a U.S. decision to curb imports of Chinese tyres.
* But falling rubber inventories in Japan are limiting the downside for nearby TOCOM contracts, traders said.
MARKET NEWS
* China’s eight-day National Day holiday starts on Thursday.
* The dollar hung onto gains against the yen on Wednesday, staying above 8-month lows hit earlier this week, as traders pared short positions on a view that the greenback’s slide was perhaps too fast. [USD/]
* Japan’s Nikkei share average <.N225> was up 0.3 percent. [.T]
* U.S. stocks fell on Tuesday as a surprise drop in a gauge of consumer confidence overshadowed signs of stabilisation in housing and solid earnings from Walgreen Co . [.N]
* Oil prices fell slightly on Tuesday as U.S. consumer confidence data weighed on markets and the government revised downward U.S. demand for July. [O/R]
DATA EVENTS
* The following data is expected on Wednesday:
– Japan manufacturing PMI for September (2315 GMT)
– Japan preliminary industrial output for August (2350 GMT)
– China PMI for September (0230 GMT)
– Japan Aug construction orders, housing starts (0500 GMT)
– IMF releases Global Financial Stability Report (0630 GMT)
– Euro zone flash consumer prices (0900 GMT)
– U.S. ADP employment report for Sept (1215 GMT)
– U.S. second-quarter GDP final (1230 GMT)
– U.S. second-quarter corporate profits revised (1230 GMT)
– U.S. Chicago PMI for Sept (1345 GMT)
Source: Reuters