Tokyo rubber futures rebound after overnight jump in Shanghai

New benchmark TOCOM rubber futures bounced back on Wednesday after an overnight jump in Shanghai futures, buoyed by higher oil prices.

FUNDAMENTALS

The Tokyo Commodity Exchange’s new rubber contract for May delivery had climbed 0.8 yen, or 1.2 percent, from its opening price of 156.4 yen per kg to 157.6 yen by 0046 GMT, after ending down more than 3 percent the previous day. RUB/T

The most-active rubber contract on the Shanghai futures exchange for January delivery SNRcv1 surged 3.8 percent to 10,610 yuan per tonne in overnight trade.

Turkey shot down a Russian warplane near the Syrian border on Tuesday, saying the jet had violated its air space, in one of the most serious publicly acknowledged clashes between a NATO member country and Russia for half a century.

MARKET NEWS

The U.S. dollar dipped to a 1-1/2 week low of 122.31 JPY= and has since edged back to 122.44 early on Wednesday, as investors cut crowded long positions amid heightened geopolitical tensions after Turkey downed a Russian warplane.FRX/

Oil prices jumped and government debt prices edged up on Tuesday as concern about global tensions rose after Turkey shot down a Russian warplane near the Syrian border.

Japan’s benchmark Nikkei stock average (XC0009692440) was down 0.5 percent in Wednesday trade, after U.S.shares erased early declines, ending slightly higher the previous day as energy shares rose with oil prices.

DATA/EVENTS (GMT)

The following data is expected on Wednesday: (Time in GMT)

0745 France Consumer confidence Nov

1330 U.S. Personal income Oct

1330 U.S. Durable goods orders Oct

1330 U.S. Weekly jobless claims

1400 U.S. Monthly home price index Sep

1500 U.S. New home sales Oct