Saturday, September 8, 2012

Still rubber waiting for directional move


Asian markets surged after European Central Bank (ECB) chief Mario Draghi unveiled a plan to buy the bonds of troubled eurozone nations such as Spain and Italy in order to lower their cost of borrowing and help them get back on their feet under a scheme named “Outright Monetary Transactions”.

Further support came from positive macroeconomic reports from the U.S data showing many more jobs than expected were created in the private sector, lifting hopes for the world’s number one economy.

The ECB would buy unlimited amounts of debt from troubled nations but the purchases would depend on those countries asking for bailout cash and agreeing to undertake economic reforms.

RSS4 grade rubber ruled firm in the Indian market buoyed by a jump seen in natural rubber prices in the major international market and closed at `. 174.50 a kg, but still prices continued to vary in tight ranges awaiting fresh cues for further directional moves. In the domestic futures market, the September series closed at `.178.57, October at `.173.39, November at `.173.11 and December at `.174.03 a kg on the National Multi Commodity Exchange. On TOCOM rubber futures, for 10th September current trade as of 8th September at 04:25 JST, September series were trading at ¥221.2 a kg, October at ¥223.8, December at ¥225.4 and February 2013 at ¥226.6 a kg.

Read lot more in Rubber4U – 15th September 2012 issue

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