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TOKYO, Oct 22 (Reuters) – Benchmark TOCOM rubber futures fell to a three-week low on Thursday, extending losses into fifth session, as persistent concerns over oversupply and slowing growth in top buyer China continued to weigh on the market sentiment.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for March delivery was trading down 1.0 yen, or 0.6 percent, at 165.5 yen ($1.38) per kg by 0057 GMT. It earlier fell as low as 164.4 yen, the lowest since Sept.30.
The European Central Bank (ECB) is likely to keep the door open for more monetary stimulus but stop short of taking new policy steps at a meeting on Thursday as it awaits fresh indications about the outlook for euro zone inflation.
General Motors Co (GM) reported record quarterly earnings for the third quarter, as strong demand for trucks in North America and improved profit margins in China overcame declining revenues.
MARKET NEWS
Copper fell to near two-week lows on Wednesday, under pressure from fund selling as worries about oversupply and slowing demand growth in China weighed on sentiment.
Oil prices fell about 2 percent to three-week lows on Wednesday as the U.S.government reported a bigger build than expected in crude stockpiles, although significant drawdowns in gasoline and distillates prevented a steeper slide in crude futures.
The U.S. dollar was steady against the yen at 119.89 yen JPY= early on Thursday ahead of the ECB meeting later the day that could pave the way for an eventual extension of the bank’s quantitative easing steps. FRX/
Japan’s benchmark Nikkei stock average was steady in Thursday trade after a sharp fall in mainland Chinese shares rekindled worries about the health of China’s economy while investors awaited word from the ECB on its plans regarding additional stimulus.
Source: Reuters