Tokyo rubber futures fall more than 2 pct on weaker oil(24/05/2559)
TOKYO, May 23 (Reuters) ? Benchmark TOCOM rubber futures fell more than two percent on Monday, hovering near a 2-1/2-month low hit last week, weighed down by weaker oil pricesand a firmer yen amid growing expectations of an imminent U.S.rate hike.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for October delivery JRUc6 0#2JRU: was down 4.3 yen, or 2.6 percent, as of 0057 GMT, after touching the lowest since March 2 onFriday. The contract fell 5.8 percent last week. RUB/T
Japan?s exports fell 10.1 percent in April from a year earlier, down for a seventh straight month, Ministry of Finance data showed on Monday, reflecting sluggish demand from China and emerging markets.
The probability of a June rate hike by the U.S.Federal Reserve rose from around 4 percent at the start of the week to 30 percent on Friday, according to CME Group?s FedWatch site.
Futures markets are predicting two rate increases this year as opposed to just one as recently as last week. MKTS/GLOB
MARKET NEWS
Oil prices slipped in early Asian trade on Monday on a strong dollar as the odds grow of a June or July rate hike, and signs that global oil supply is holding up even as unplanned outages rise to at least a five-year high.
The U.S. dollar fetched 109.86 yen JPY= early on Monday, having reached a three-week high of 110.59 last Friday.A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
Japan?s benchmark Nikkei stock average (XC0009692440) was down 1.3 percent in Monday trade, pressured by a stronger yen.
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
0730 Germany Markit Mfg Flash PMI for May
0800 Eurozone Markit Mfg Flash PMI for May
1345 US Markit Mfg PMI Flash for May
1400 EZ Consumer Confidence
Source: globalrubbermarket (23/05/2016)
