Tokyo rubber futures steady near 6-year low amid China concerns

Benchmark TOCOM rubber futures hovered near a 6-year low on Thursday as bargain hunting after three straight sessions of losses was offset by selling on persistent fears about slowing demand in top buyer China.

FUNDAMENTALS

The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery was unchanged at 155.7 yen ($1.28) per kg as of 0112 GMT, after hitting its lowest level since July 2009 the previous day. RUB/T

Federal Reserve Chair Janet Yellen on Wednesday pointed to a possible December interest rate “liftoff” but said rates would rise only slowly from then on to nurture the U.S.economic recovery.

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.

MARKET NEWS

The U.S. dollar rose against the yen to 121.42 yen JPY= early on Thursday, following a jump in U.S. Treasury yields as Federal Reserve officials hammered home the message that a December “liftoff” in U.S.rates is a distinct possibility.

Japan’s benchmark Nikkei stock average (XC0009692440) was up 0.5 percent in Thursday trade despite a drop in Wall Street stocks after Fed Chiar Yellen’s comment on a possible December interest rate hike. MKTS/GLOB

Crude oil futures fell 4 percent on Wednesday, wiping out gains from the previous day’s rally, as a strong dollar, tumbling gasoline prices and rising U.S.crude inventories bore down on the market.

DATA/EVENTS (GMT)

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

0700 Germany Industrial orders Sep

1000 Euro zone Retail sales Sep

1330 U.S. Weekly jobless claims

($1 = 121.4100 yen)