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Money

European aid gives rubber a bounce

(China Daily)
Updated: 2010-05-11 10:20
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TOKYO - Rubber rallied from the lowest price in almost five months on optimism an emergency package by European policymakers will contain a sovereign-debt crisis and maintain economic growth in the region.

Related readings:
European aid gives rubber a bounce Anti-dumping measures on chloroprene rubber under review
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European aid gives rubber a bounce Drought takes bounce off rubber growers
European aid gives rubber a bounce Rubber demand up on vehicle sector expansion

Futures on the Tokyo Commodity Exchange rose as much as 2.9 percent, trimming a five-day, 18 percent slump after European policymakers agreed to an emergency lending mechanism worth almost $1 trillion. Rubber also gained as crude oil rose for the first time in five days, reducing the appeal of the rival synthetic product made from petroleum.

Rubber for October delivery, the most-active contract, rose as much as 7.7 yen to 270.3 yen per kilogram ($2,906 a metric ton) before settling at 269.4 yen.

Bloomberg News

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