IRCo's DCP and cash rubber prices were pulled down by stop-loss selling and profit-taking on rubber futures, which were influenced by a global sell-off in commodity and stock markets during the subdued week that most global markets were closed for the Labor Day on Monday and Tokyo Commodity Exchange was closed from Tuesday to Thursday for the Golden Week holiday, because investors looked for other safe havens after the White House announced that Osama bin Laden was dead on Monday.
A Reuters poll on Friday said that Tokyo rubber futures were expected to stay at a relative high level, with an increase in supply likely to be offset by firm demand. Thai RSS3 was forecast to stay at US$5.15 per kg by the end of May. Malaysia SMR20 was expected to be at US$4.8 per kg, while Indonesia SIR20 could stay at US$4.6 per kg.
Asian stock markets were on a downward trend throughout the week amid the atmosphere of bearish commodity sentiment and the news on weak U.S. economic data and choppy European shares due to persistent unresolved sovereign debts in some member countries. The three measures on Wall Street also ended the week lower even though the U.S. new jobs added 244,000 in April, but it could not outweigh the increase in applications for jobless claims that jumped to 474,000 in the week ended 30 April and the rise in the unemployment rate of 9.0% in April.
A temporary return to a strengthen greenback against the euro, the Japanese yen, and other currencies during the week was mainly a result of a sharp fall in crude oil futures caused by short selling for profit-taking and concerns about weaker demand for oil and the news that Greece would leave the 17-euro bloc, and unclear words by the European Central Bank (ECB) President Jean-Claude Trichet whether the ECB would raise interest rates in the euro zone next month.
(Source: http://www.irco.biz/MarketWise.php?PHPSESSID=1bf6fbbc0328449428cacbcb07cb4c9e)
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