Market and product
Tokyo futures rise as share prices recover
TOKYO, June 13 (Reuters) – The most actively traded TOCOM rubber futures rose on Wednesday in line with gains in share prices, but lingering worries over Europe curbed aggressive buying after the rubber market hit a 2-1/2 year low earlier this week.
FUNDAMENTALS
* The most-active Tokyo Commodity Exchange rubber contract for November delivery as up 3.8 yen or 1.6 percent at 242.9 yen per kg at 0016 GMT.
* Earlier this week, the contract touched a 2-1/2 year low of 232.2 yen, the lowest since November 2009.
* Raising the stakes in Europe’s debt crisis, Austria’s finance minister said Italy may need a financial rescue because of its high borrowing costs, drawing a sharp denial on Tuesday from the Italian prime minister.
* Nissan Motor Co and Renault expect “three to four more years of stagnation” in the European auto business, Carlos Ghosn, chief executive officer of both companies, said on Tuesday.
* OPEC and the U.S. government agreed separately in their outlook reports on Tuesday that global oil markets could loosen further in the second half of the year, with prospects for demand dimming while non-OPEC supply races ahead more quickly than expected.
MARKET NEWS
* Japan’s Nikkei share average was up 0.5 percent in early trade on Wednesday.
* U.S. stocks took their cues from Europe’s troubled debt markets on Tuesday, staging a comeback rally to end up more than 1 percent as Spanish bond yields came off euro-era record highs.
* The euro drifted higher against the dollar on Tuesday after three days of losses as risk aversion eased somewhat on gains in stocks and commodities while investors cashed in bearish bets on the single currency ahead of Sunday’s Greek election.
DATA EVENTS
* The following data is expected on Wednesday:
0900 Euro zone Industrial production Apr
1230 U.S. Producer prices May
1230 U.S. Retail sales May
1400 U.S. Business inventories Apr
1430 U.S. EIA petroleum status report
0800 OECD IEA Oil Market Report
