This entry was posted on Wednesday, December 2nd, 2009 at 9:56 am 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, Dec 2 (Reuters) – Tokyo rubber futures rose to a 14-month high on Wednesday, helped by a recovery in the dollar versus the yen and recent gains in oil prices.
FUNDAMENTALS
* The key Tokyo Commodity Exchange rubber contract for May delivery <0#JRU:> stood at 255.3 yen per kg at 0059 GMT, after earlier rising as high as 256.1 yen, its highest since October last year.
* U.S. crude futures pared gains on Wednesday after industry data showed that U.S. crude stocks rose much more than expected. [O/R]
* Unseasonal rain in key producing areas has caused floods, disrupting tapping and boosting rubber prices.
MARKET NEWS
* The dollar was steady against the yen at 86.75 yen . It hit a high above 87 yen on Tuesday, a jump from a 14-year low marked late last week, as the Bank of Japan offered banks more short-term funds to support the ailing economy after an emergency policy-setting meeting. [USD/]
* Japan’s Nikkei average <.N225> fell 0.2 percent on Wednesday after hitting a two-week closing high the previous day, but metal stocks such as Sumitomo Metal Mining <5713.T> gained after gold hit record highs. [.T]
* The Dow Jones industrial average climbed to its highest close in 14 months on Tuesday as a weak dollar boosted natural resource companies’ shares and economic data reinforced hopes for a sustainable recovery. [.N]
* U.S. auto sales edged higher in November, led by an outsized gain for Hyundai Motor Co and mixed results for rivals in a trend automakers said pointed to a grudging recovery in the U.S. economy.[ID:nN01511318]
DATA EVENTS
* The following events are expected on Wednesday:
– Japan Nov Reuters Tankan (2330 GMT)
– Euro zone producer prices for Oct (1000 GMT)
– Weekly U.S. mortgage market index (1200 GMT)
– U.S. ADP employment report for Nov (1315 GMT)
– U.S. Treasury Secretary Geithner testifies (1430 GMT)
– Fed releases Beige Book (1900 GMT)
RELATED NEWS >Tokyo rubber extends gains on yen, breaches 250 yen [RUB/T] >Markets rise in US trade as Dubai fears ease [COM/WRAP] >US manufacturing expands;home sales surge [ID:nN01398224] >US auto sales eddge up, led by Hyundai boom [ID:nN01511318] >Japan non-mini auto sales up 36 pct in Nov [ID:nTKC000562] >TAKE A LOOK-US Nov auto sales higher; others auto news [nCARS1]
Source: Reuters