Monday, April 25, 2011

IRCo's WEEKLY MARKET SNAPSHOT: 18 - 22 April 2011

IRCo's DCP moved downwards and stood at 521.04 US cents/kg on Friday, or down 3.4% from an earlier Friday while rubber futures and physical markets in the region also fell significantly from an earlier Friday due to a downgrade to the U.S. debt outlook by Standard & Poor's and an announcement of the People's Bank of China to raise the reserve requirement ratio (RRR) by a half percentage point to 20.5% for large banks on Thursday. However, persistent firm market fundamentals still lent support for cash prices to stay above 500 US cents/kg.

The downgrade to the U.S. debt outlook by S&P's on Monday affected sentiment on global stock markets early in the week, and the latest hike in China's RRR on Thursday also affected Shanghai Composite Index on Friday. Nonetheless, strong U.S. earnings reports from the technology sector and existing home sales in March, partial recoveries of European technology and auto shares, high global commodity prices, especially firm oil and gold prices, and a weakening greenback against the Japanese yen and the euro, including the Thai baht, Indonesian rupiah, and Malaysian ringgit, were the major factors that kept global stock markets firm during the week.

(Source: http://www.irco.biz/MarketWise.php)

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