This entry was posted on Saturday, September 17th, 2011 at 8:47 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, Sept 16 (Reuters) – Key Tokyo rubber futures settled 1.2 percent higher on Friday helped by rises in oil and stock prices, but the market is expected to remain stuck in a tight range until it finds strong trading factors.
The key Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> settled up 4.3 yen at 365.2 yen per kg. The market has fallen below its key 50-day moving average over the past week, which stood at 371.4 yen on Friday.
The most active Shanghai rubber contract for January delivery rose 615 yuan to close at 33,680 yuan per tonne. Volume stood at 869,932 lots.
“The market is stuck in a tight range and the level of open interest is low,” Hiroyuki Kikukawa, a general manager at trading company Nihon Unicom Inc in Tokyo, said. “It won’t move in a big way until after the end of this year, when rubber supply from producing countries starts decreasing.”
Oil was headed for a weekly gain on Friday after central banks launched coordinated action to boost European bank funding, easing concern about falling oil demand from industrialised consumers. [O/R]
The Nikkei stock average rose more than 2 percent, posting its biggest daily percentage gain since March, as the coordinated action from central banks calmed fears of a European credit freeze and sent financial shares surging. [.T]
The euro clung to gains, although the rally is unlikely to last as the Greek debt crisis remains in a critical state. Against the yen, the dollar remained stuck at 76.77 yen . [USD/]
Investors were reluctant to make heavy bets ahead of a meeting of EU finance ministers in Poland which U.S. Treasury Secretary Timothy Geithner will also join. Discussions are expected to focus on leveraging the euro zone’s bailout fund to make it more effective in fighting the debt crisis.[ID:nL5E7KF1CX]
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For factbox on global rubber trading [ID:nL4E7JO0G8]
For weekly softs outlook [SOF/AS]
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European new car registrations increased 7.8 percent in August to 787,500 vehicles as all major markets found themselves growing at the same time for the first month in over a year, data showed on Friday. [ID:nF9E7JV001]
Source: Reuters