IRCo's DCP fell to 337.25 US cents/kg on Thursday from 338.21 US cents/kg on Monday or down 0.96 US cent due mainly to the bearish news on Shanghai rubber futures and a strengthening yen against the greenback. However, firm crude oil futures and an uptrend on physical rubber markets during the week could stop a fall in rubber futures at a certain level. The decline of Japan's crude rubber inventories totaled 4,144 tons as of 31 August or down 4.2% from 20 August, according to the Rubber Trade Association of Japan, indicated some shortage of rubber in the country.
Asian stock markets settled higher after China's domestic consumption showed some rises even as Beijing continues its campaign to cool the economy while Wall Street also ended higher for the second straight week due to increased expectations for global oil demand on Friday. However, European stock markets finished the week on a subdued note on Friday as performance of most financial banks in the euro zone was lower-than-expectations, especially Deutsche Bank of Germany.
On the financial front, foreign exchange investors are seeking for safe havens and higher yield currencies with strong links to economic expansion in China and other emerging economies, including Southeast Asian countries such as Thailand, Indonesia and Malaysia, because the U.S. and European economies have shown some uncertainty, and it looks like that their economic growth might slow down somewhat in 3Q10 and 4Q10. These encourage foreign exchange investors to park their money on Asian forex markets and cause the currencies in this region to continue strengthening against the greenback further, including the Japanese yen. In addition, crude oil futures on New York Mercantile Exchange rebounded slightly on Friday after a pipeline leak in Illinois rattled traders worry about its effect on supplies. However, its rise should be short-lived because the global economy remains fragile.
(irco.biz)
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