BANGKOK, July 30 (Reuters) – Tokyo rubber futures slipped on Monday as traders took profit after recent gains, but prices were still supported by firm oil prices and hopes the United States and Europe will unveil new steps to boost their fragile economies this week, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery slipped 2.6 yen lower to settle at 232.4 yen ($2.96) per kg.
The most-active rubber contract on the Shanghai futures exchange for January delivery was down 380 yuan to finish at 22,365 yuan ($3,500) per tonne.
The front-month August rubber contract on Singapore’s SICOM exchange was last traded at 283.0 U.S. cents per kg, down 1.0 cent.
“Rubber prices rose in the early session as players hoped that the U.S. and Europe can figure out some measures to boost their economies, but finally rubber prices succumbed to profit-taking,” a Bangkok-based dealer said.
The European Central Bank is due to hold a policy meeting on Thursday, a day after the Fed completes a two-day rate-setting meeting.
However, optimism was evident across most markets on Monday, with Asian shares extending their gains, as European leaders continued to reassure markets that they would not allow the euro to break up.
Brent crude rose toward $107 a barrel on Monday stretching gains into a fifth consecutive day on hopes of a stimulus package from the United State and the EU.
TOCOM prices were expected to rebound on Tuesday after prices finished above a strong support level of 230 yen, while expectations about possible stimulus measures should still support.
However, the upside was seen capped by profit-taking, dealers said.
($1 = 78.6300 Japanese yen)
($1 = 6.3807 Chinese yuan) (Reporting by Apornrath Phoonphongphiphat; Editing by Jacqueline Wong)
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