Benchmark TOCOM rubber futures rose on Tuesday as investors unwound short positions on the back of higher Tokyo stock market and rising oil prices, but gains were capped by nagging worries about an oversupply and fears for geopolitical tensions after Friday’s attacks in Paris.
FUNDAMENTALS
• The Tokyo Commodity Exchange rubber contract for April delivery JRUc6 0#2JRU: had risen 0.9 yen to 157.0 yen ($1.27) per kg by 0048 GMT, after falling the previous day. French President Francois Hollande called on the United States and Russia on Monday to join a global coalition to destroy Islamic State following the attacks across Paris, and announced a wave of measures to combat terrorism in France.
The Bank of Japan is unlikely to offer any further monetary easing this year to avoid unwelcome yen falls that would hurt low-income households, one of the architects of Prime Minister Shinzo Abe’s economic policy strategy said on Monday. urn:newsml:reuters.com:
MARKET NEWS
• Japan’s benchmark Nikkei stock average (XC0009692440) was up 1.3 percent on Tuesday, taking heart after seeing Wall Street take the attacks in Paris in stride and surge overnight.
• Oil prices rose on Monday after strong losses last week, as Friday’s deadly attacks in Paris raised geopolitical tensions that some said could threaten global oil supply.
• The U.S. dollar stood near a 1-week high of 123.33 yen JPY= , a safe-haven currency usually sought in times of geopolitical tension.
• Copper prices fell to their lowest in more than six years on Monday in a sell-off triggered by the attacks in Paris, a stronger dollar and poor demand prospects in top consumer China.
DATA/EVENTS (GMT)
• The following data is expected on Tuesday: (Time in GMT)
1000 Germany ZEW economic sentiment Nov
1330 U.S. Consumer prices Oct
1415 U.S. Industrial output Oct
1500 U.S. NAHB housing market index Nov
($1 = 123.2500 yen)
