RUBBER PRICES MAY 19: Rubber Turns Higher on US Economic Data, Oil Prices

Rubber prices opened down by 0.13% or 0.30 points at 223 yen per kg this morning.
At yesterday’s trading (Thursday, 18/5), rubber prices closed down by 2.79% or 6.40 points to 223.30, ending a seven-day rally due to a decline in stock and commodity markets that affected the rubber market.
According to Market Risk Advisory partner in Tokyo, Naohiro Niimura, the latest positive economic data from the United States (US) and a tightening of supply supported the strengthening rubber prices this week.
`The Philadelphia index shows that the US economy is likely expanding more strongly than expected.` Niimura said as quoted from Bloomberg.
The Federal Reserve’s Philadelphia Business Outlook Index showed better than expected numbers, putting the market focus back on the US central bank’s anticipated rate hike despite turmoil within President Donald Trump’s administration.
Niimura added that the continuation of the sentiment concerning tight rubber supply and rising crude oil prices also supported the increase in rubber prices.
However, increases in rubber prices were limited as slowing sales of new homes in China raised concerns about demand.
This morning, WTI oil prices were again observed to increase by 0.85% to US$49.77 per barrel at 10.13 WIB, while Brent oil prices rose by 0.74% to US$52.90 per barrel.
On the other hand, the yen exchange rate this morning strengthened by 0.31% or 0.35 points to 111.14 yen per US dollar at 10.14 WIB, after yesterday’s 0.60% drop to 111.49.
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