TOKYO (Sept 27): Benchmark Tokyo rubber futures hit a one-week high on Wednesday, buoyed by late recovery in Shanghai futures and yen’s decline against the dollar after comments by the US Federal Reserve chief boosted bets on another rate hike, brokers said.
Against the yen the dollar edged up to 112.33 yen, bouncing back from Tuesday’s low of 111.50.
A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 15 yuan to finish at 14,655 yuan (US$2,207) per tonne, recovering from a near two-month low hit last Friday.
The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 151.50 US cents per kg, down 0.2 cent.
(US$1 = 112.7500 yen)
(US$1 = 6.6390 Chinese yuan)
Source: globalrubbermarket (27/09/2017)
LONDON, Sept 26 (Reuters) - Sterling hit a 10-week high against the euro on Tuesday, as worries over a period of political uncertainty in Germany following elections on Sunday continued to drag the single currency lower. Fears that German Chancellor Angela Merkel could find it difficult to strike a coalition deal with parties that are radically different from her own have weighed on the euro since the results of Sunday's election, with the single currency recording its worst day this year against the dollar on Monday. That weakness was the main reason for sterling's rise, analysts said. In morning trade in London, the pound strengthened to 87.545 pence per euro, up 0.4 percent on the day. That was its highest level since July 17. "It is the sentiment after the German elections on Sunday (that is causing this move) ... There's ... uncertainty whether Merkel can find common ground between the three different parties," said Nordea currency strategist Niels Christensen. Investors were also closing out long-euro positions towards the end of the month, Christensen said, which was amplifying the euro's weakness. Sterling also climbed 0.1 percent to $1.3475, up from a 10-day low of $1.3432 hit on Monday. Bets that the Bank of England will raise interest rates in coming months last week pushed the pound to its highest levels since the Brexit vote, with investors trimming their bets against the currency to the lowest in nearly two years. However, traders said sentiment on the pound had turned somewhat negative after a speech on Friday by British Prime Minister Theresa May that was intended to revive Brexit negotiations. Investors said May had failed to give enough concrete details on Britain's negotiating position. UK PM May's landmark speech on Brexit negotiations was a step forward and reduces the risk of an early end to the negotiations and ultimately of a cliff-edge departure by the UK in March 2019," wrote strategists at Credit Agricole. "That said, the speech lacked the precise negotiating position needed to unblock the talks in the short term, thus discussions about the future relationship are unlikely to start before year-end." Negotiations have resumed this week in Brussels, with the European Union's chief negotiator Michel Barnier saying on Monday that Britain, which has asked for a two-year transition period after it leaves the bloc in 2019, would have to abide by all EU rules during this phase Source: reuters (26/09/2017)
NEW YORK, Sept 26 (Reuters) - The euro fell to its lowest level in a month on Tuesday as worry about political fallout in Germany and other euro zone countries grew. A speech by French President Emmanuel Macron, who has called for a fundamental overhaul of the European Union's single currency zone and whose ideas include creating a euro zone budget and a euro zone finance minister, failed to stem outflows from the single currency, which plumbed its lows of the day as he spoke. Investors have shifted their focus to the euro zone's growing political divides in places such as Spain and Italy after the German election, said Joseph Trevisani, Chief Market Strategist at WorldWide Markets in Woodcliff Lake, New Jersey. "The markets have been ignoring it, preferring to focus on the drama out of Washington, but the drama out of Washington has not affected the U.S. economy," Trevisani said. "The European problems are structural and political and deep." The results of Germany's election, in which Merkel won a fourth term as Chancellor but saw her party with its worst showing since 1949, have forced Merkel to consider a new coalition, including the liberal Free Democrats (FDP), a party critical of Macron's ideas on Europe. The euro slipped half a percent to as low as $1.1781 , its weakest since Aug. 25, after falling around 0.9 percent on Monday - its heaviest one-day loss since December. Commerzbank currency strategist Thu Lan Nguyen, in Frankfurt, said hopes for greater euro zone integration had been the main cause of a more than 10 percent appreciation by the euro against the dollar since the first round of France's presidential election. The dollar index , which tracks the greenback against six major currencies, rose to its highest since Aug. 31 after the release of the U.S. Conference Board's consumer confidence survey that was in-line with lofty expectations. Immediate focus was on what views might be expressed by Fed Chair Janet Yellen, who is due to speak in Cleveland at 12:45 p.m. EDT (1645 GMT) on "inflation, uncertainty, and monetary policy". New Zealand's dollar extended the previous day's slide to its lowest since Sept. 7. It was down 0.9 percent at $0.7193 , having sunk after the country's National Party won the largest number of votes in Saturday's election but not enough seats to govern outright. (Reporting by Dion Rabouin; Additional reporting by Jemima Kelly in London; Editing by Susan Thomas) Source: reuters (26/09/2017)
Sept 26 (Reuters) - The dollar could be headed for a rebound this year after a decline that has left it near its lowest level in more than two years, BlackRock's chief fixed-income strategist said on Tuesday. Jeffrey Rosenberg said he views a resurgent dollar as a possibility in light of recent political developments in Europe putting pressure on the euro. That has not made him bearish on emerging market debt yet, but he is closely watching the market, Rosenberg told Reuters on the sidelines of the UBS CIO Global Forum in New York. "It's been a really good environment for investing in emerging markets," he said during the event. "We continue to favor them, however, we are now inching on the precipice of another theme reversal." The dollar's overall weakness has been a major contributor to the outperformance of many emerging markets assets this year, analysts and fund managers say. A fall by the euro against the dollar would strengthen the greenback, potentially reversing that trade. Germany could face months of coalition talks following last weekend's election, increasing uncertainty. That could also refocus investor attention on other political events in Europe, such as an independence referendum in Spain and Italian elections next year, driving the euro lower. The single currency has faced additional pressure since European Central Bank President Mario Draghi singled out currency volatility as a source of uncertainty that required monitoring and argued that "ample" ECB accommodation was still needed. That could mean a "convergence" in the return spreads between the greenback and emerging market currencies as well as emerging market local currency-denominated bonds, Rosenberg said. Local currency emerging market bonds have been among the top performing assets this year. "A weak dollar tailwinds global investment, so a stronger dollar then makes us have to rethink some of those (foreign exchange) exposures," he said. The dollar came into September having suffered six consecutive months of declines against a basket of major trading partner currencies, and was 9.34 percent lower through August, the worst first eight months to a year for the currency since 1986. Source: Reuters (26/09/2017)
Triangle Tire USA is increasing prices up to 6% with in-line adjustments on all its products sold in the U.S., effective Oct. 1. Triangle said the price increase is due to increased raw material costs and shipping/logistics expenses, as well as new regulations in China, which have added to production costs. “Triangle Tire USA is working hard to deliver exceptional value through our world-class products, logistics and related services, but rising costs this year have made it necessary to enact this price increase,” said Rick Phillips, vice president of sales for Triangle Tire USA. Source: china web (22/09/2017)
China Manufacturers Alliance (CMA) is increasing prices on its Double Coin produced TBR, high speed crane and ROTR products beginning Nov. 1. Due to current pricing pressures, CMA is initiating a general price increase of up to 6% with some in-line price adjustments. “The continuing increases in costs of the raw materials and additives used in manufacturing have prompted CMA to increase prices,” said Tim Phillips, vice president of marketing and operations at CMA. “While other manufacturers are facing the reality of raw material shortages in China’s domestic marketplace, we have been able to secure the necessary materials to meet our production requirements, insuring timely deliveries to all our customers.” Source: china web (25/09/2017)
TOKYO (Reuters) - The U.S. dollar was underpinned by remarks from the Federal Reserve chief on the need to continue with rate hikes, while the euro licked the wounds from political uncertainty following the German election at weekend. The dollar's index against a basket of six major currencies (DXY) (=USD) stood at 93.07 in early Wednesday trade after it reached a high of 93.286 the previous day, its highest level in almost a month. Fed Chair Janet Yellen said on Tuesday that the Federal Reserve needs to continue gradual rate hikes despite broad uncertainty about the path of inflation. It would be "would be imprudent to keep monetary policy on hold until inflation is back to 2 percent," she said. "Her comments suggest that latest (soft) inflation readings do not have a big bearing on the Fed's monetary policy. The Fed's focus is not to delay rate hikes too much to avoid a situation where it needs to raise rates hastily in the future," said Yukio Ishizuki, senior strategist at Daiwa Securities. U.S. interest rate futures price dipped further to price in about 70 percent chance of a rate hike by December compared to near 60 percent on Monday. Against the yen the dollar stood at 112.27 yen , bouncing back from Tuesday's low of 111.50. The euro slipped to a five-week low of $1.17575 on Tuesday and last stood at $1.1790. The euro weakened against other currencies, hitting a 10-week low of 0.87545 British pound (EURGBP=D4) and two-week low of 1.14075 Swiss franc (EURCHF=R). The common currency had rallied more than 10 percent so far this year on as worries about the rise of anti-establishment political forces in Europe faded while expectations rose for tapering the European Central Bank's stimulus. But the rise of a far-right party and the decline of traditional parties in Sunday's German election has left Chancellor Angela Merkel struggling to form a coalition government, denting investor sentiment. Elsewhere, the Australian dollar slipped a tad to $0.7874 after having dropped to six-week low of $0.7860 on Tuesday. The Aussie was undermined by a fall this month in the price of iron ore, its main export product. The biggest focus for the market for Wednesday is the announcement of a tax plan by the U.S. administration and Republicans in Congress. The plan has been developed over several months by six White House and congressional Republicans working behind closed doors. President Donald Trump told U.S. lawmakers on Tuesday he wants bipartisan cooperation on tax reform. Source: investing.com (26/09/2017)
Investing.com - Gold prices fell in Asia on Wednesday as investors took positions ahead of an expected roll-out of the Trump administration's plan for tax cuts and after noting what some are seeing as a more hawkish Fed after a speech by the central bank's chief. Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell 0.27% to $1,298.20 a troy ounce. Overnight, gold prices fell on Tuesday as December rate-hike expectations jumped after Federal Reserve chair Janet Yellen said that central bank should be “wary of moving too gradually” on interest rates to avoid the economy overheating. In a speech titled “Inflation, Uncertainty, and Monetary Policy” at the National Association for Business Economics’ annual meeting on Tuesday, Fed chair Janet Yellen reaffirmed the central bank’s view that raising rates gradually was the most appropriate policy amid uncertainty over inflation. “It would be imprudent to keep monetary policy on hold until inflation is back to 2 percent,” Yellen said Tuesday in the text of remarks prepared for delivery in Cleveland. According to investing.com's fed rate monitor tool, nearly 80% of traders expect a December rate hike, compared to about 60% a week ago. Yellen’s comments came a day after gold prices rallied sharply, following escalating tensions on the Korean Peninsula after North Korea said U.S. President Donald Trump had “declared war” and that it would “shoot down U.S. bombers flying near the peninsula." "Since the United States declared war on our country, we will have every right to make countermeasures, including the right to shoot down United States strategic bombers even when they are not inside the airspace border of our country," North Korea Foreign Minister Ri Yong said. Analysts were quick to downplay expectations of a prolonged slump in gold prices suggesting that safe-haven demand could return as geopolitical uncertainty remained “front and center”. "Geopolitics haven't come off the table. They are still front and center but after a rally you tend to get a tiny bit of a pullback," said ETF Securities commodity strategist Nitesh Shah. Source: investing.com (26/09/2017)
Investing.com – The dollar rose against a basket of major currencies on Tuesday, as investors mulled over Fed chair Janet Yellen's comments reaffirming the central bank’s view that raising rates gradually is the most appropriate policy measure. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.31% to 92.73. “It would be imprudent to keep monetary policy on hold until inflation is back to 2 percent,” Yellen said Tuesday in the text of remarks prepared for delivery in Cleveland. Following an initial spike higher the dollar eased somewhat, as investors mulled over Yellen’s concerns that the slowing pace of inflation could force rates to remain lower for longer, reducing the central bank’s ability to ease monetary policy at times of market distress. "Sustained low inflation such as this is undesirable because, among other things, it generally leads to low settings of the federal funds rate in normal times, thereby providing less scope to ease monetary policy to fight recessions," Yellen said. Yellen’s comments came just hours after the greenback shrugged off a duo economic reports showing weakness in both consumer confidence and the housing sector. The Commerce Department said on Tuesday new home sales decreased 3.4% to a seasonally adjusted annual rate of 560,000 units last month, which was the lowest level since December 2016. Economists had forecast new home sales rising 3.3% to a pace of 588,000 units last month. In a report, the Conference Board, a market research group, said its index of consumer confidence decreased to 119.8 this month from a reading of 120.4 in August. The pair of sluggish reports on economic growth failed, however, to spark a selloff in the greenback as weakness in both the euro and yen capped downside momentum. EUR/USD fell to 0.41% to $1.1798 as concerns over the political fallout in Germany persisted, pressuring the single currency to a one-month low. USD/JPY rose 0.42% to Y112.19, following Japanese Prime Minister Shinzo Abe’s decision to call an election a year early as he seeks a fresh mandate to overcome “a national crisis” amid rising threats from North Korea. GBP/USD fell 0.08% to $1.3456 while USD/CAD fell 0.27% to $1.2337. Source: investing.com (26/09/2017)
Investing.com - The dollar gained against the yen on Wednesday in a thin regional data day with the focus on the likely unveiling of plans for U.S. tax cuts later in the day. USD/JPY changed hands at 112.47, up 0.20%, while AUD/USD fell 0.15% to 0.7874. GBP/USD fell 0.12% to 1.3443, while EUR/USD dipped 0.10% to 1.1781. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.11% to 92.91. Overnight, the dollar rose against a basket of major currencies on Tuesday, as investors mulled over Fed chair Janet Yellen's comments reaffirming the central bank’s view that raising rates gradually is the most appropriate policy measure. “It would be imprudent to keep monetary policy on hold until inflation is back to 2 percent,” Yellen said Tuesday in the text of remarks prepared for delivery in Cleveland. Following an initial spike higher the dollar eased somewhat, as investors mulled over Yellen’s concerns that the slowing pace of inflation could force rates to remain lower for longer, reducing the central bank’s ability to ease monetary policy at times of market distress. "Sustained low inflation such as this is undesirable because, among other things, it generally leads to low settings of the federal funds rate in normal times, thereby providing less scope to ease monetary policy to fight recessions," Yellen said. Yellen’s comments came just hours after the greenback shrugged off a duo economic reports showing weakness in both consumer confidence and the housing sector. The Commerce Department said on Tuesday new home sales decreased 3.4% to a seasonally adjusted annual rate of 560,000 units last month, which was the lowest level since December 2016. Economists had forecast new home sales rising 3.3% to a pace of 588,000 units last month. In a report, the Conference Board, a market research group, said its index of consumer confidence decreased to 119.8 this month from a reading of 120.4 in August. The pair of sluggish reports on economic growth failed, however, to spark a selloff in the greenback as weakness in both the euro and yen capped downside momentum. EUR/USD fell as concerns over the political fallout in Germany persisted, pressuring the single currency to a one-month low. USD/JPY rose following Japanese Prime Minister Shinzo Abe’s decision to call an election a year early as he seeks a fresh mandate to overcome “a national crisis” amid rising threats from North Korea. Source: investing.com(26/09/2017)