SHFE rubber ends higher amid cautious optimism
BEIJING, Dec. 7 (Xinhua) – Rubber futures traded on the Shanghai Futures Exchange steadily moved upwards and settled sharply higher on Wednesday tracking gains in Tokyo.
Market speculation mounted that China might reduce the reserve requirement ratio (RRR) again and European leaders would roll out a comprehensive plan to tackle the debt problem, which helped to underpin the rubber market.
The European Central Bank (ECB) meeting on Thursday has also been closely watched. Analysts expected monetary policy makers to cut benchmark interest rates by a quarter- or half-percentage point, in a bid to boost economy.
Fluctuations of the rubber futures are expected to continue as high inventory and weak demand would continue to weigh.
The benchmark rubber contract for May delivery settled 785 yuan or 3.03 percent higher at 26,730 yuan/tonne on Wednesday.
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