Shanghai rubber retreats on US debt worries, profit-taking

Rubber futures traded on the Shanghai Futures Exchange (SHFE) settled sharply lower on Wednesday (October 16, 2013) tracking loss in local equity market as investors sold off holdings on worry about a possible default of government debt by the US.

The most actively traded contract for January 2014 delivery ended at 20,840 yuan/metric ton, down 270 yuan or 1.28% from the previous settlement.

Analysts say the US loses its authority to borrow money if it does not raise its debt ceiling by October 17, US time. With the debt ceiling deadline around the corner, people were not seeing any progress in the Congress, denting investor sentiment. (Edited by Olivia, olivia@tireworld.com.cn)