Benchmark TOCOM rubber futures slid on Wednesday to near a 6-year low hit the previous week, as weaker Shanghai prices overnight dragged, although Thai measures to support sagging local prices offered some support.
FUNDAMENTALS
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery had dropped 1.9 yen, or 1.2 percent, to 157.8 yen per kg by 0013 GMT. It earlier dove to 157.2 yen, near a 6-year low of 157.1 yen hit on Oct.27.
TOCOM was closed on Tuesday due to a national holiday in Japan.
The most-active rubber contract on the Shanghai Futures Exchange, for January delivery SNRcv1 , rose 1.2 percent overnight.
Thailand’s cabinet on Tuesday approved measures worth 13 billion baht ($365 million) to help rubber farmers and support falling prices, the director of a state rubber agency said.
China can maintain annual economic growth of around 7 percent over the next five years but there are uncertainties, including weak global trade and high domestic debt, Xinhua news agency quoted President Xi Jinping as saying on Tuesday.
The U.S. auto industry is on track for a record year of annual sales, General Motors Co (GM) said on Tuesday, as the top U.S.automaker and its rivals reported October sales that far exceeded expectations.
Volkswagen (VLKPF) on Tuesday said it had understated the fuel consumption of 800,000 cars sold in Europe, while majority stakeholder Porsche Automobil Holding SE (POAHF) warned that VW’s latest findings could further weigh on its results.
MARKET NEWS
The U.S.dollar held on to modest gains on Wednesday having firmed against the yen as on rising Treasury yields.
The greenback popped above 121.00 JPY= , pulling away from a low of 120.60. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) was up 1.6 percent in Wednesday trade, taking early cues from overnight Wall Street gains. MKTS/GLOB
Crude prices settled up about 4 percent on Tuesday as a rally in U.S.gasoline and diesel amid an outage on a key pipeline system added support to oil markets already boosted by an industry strike in Brazil and force majeure for Libyan crude loadings.
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
0145 China Caixin services PMI Oct
0850 France Markit services PMI Oct
0855 Germany Markit services PMI Oct
0900 Euro zone Markit services PMI Oct
1000 Euro zone Producer prices Oct
1315 U.S. ADP national employment Oct
1330 U.S. International trade Sep
1500 U.S. ISM non-manufacturing PMI Oct
