Wednesday, July 26, 2017

Tokyo futures drop after overnight slide in Shanghai prices

TOKYO, July 27 (Reuters) - Benchmark TOCOM rubber futures dropped on Thursday, weighed down by an overnight slide in Shanghai futures and a firmer yen against the U.S. dollar.
FUNDAMENTALS
* The Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery was down 1.4 yen, or 0.7 percent, at 212.8 yen ($1.92) per kg as of 0034 GMT, after falling 1.7 percent the previous day.
* The most-active rubber contract on the Shanghai Futures Exchange for January delivery rose nearly 300 yuan overnight to 15,920 yuan ($2,357) per tonne.
* The Federal Reserve kept interest rates unchanged on Wednesday and said it expected to start winding down its massive holdings of bonds "relatively soon" in a sign of confidence in the U.S. economy.

MARKET NEWS
* The U.S. dollar dropped 0.6 percent to 111.21 yen after the release of the Fed's policy statement. It was quoted around 111.08 yen early on Thursday.
* Japan's benchmark Nikkei stock average was down 0.2 percent, dragged down by a stronger yen.
* Oil prices rose to near eight-week highs on Wednesday, with Brent crude futures above $50 a barrel, as a much steeper than expected decline in U.S. inventories encouraged hopes the global crude glut would recede.

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