By Muhammad Fawwaz Thaqif Nor Afandi
KUALA LUMPUR, June 24 (Bernama) -- The Kuala Lumpur rubber market ended lower on Wednesday amid softer crude oil prices and a mixed performance in regional rubber futures markets, a dealer said.
She said Singapore rubber futures gained while rubber futures on the Shanghai exchanges declined.
“Crude oil prices extended losses for a third consecutive session as improving United States (US)-Iran relations and the recovery of tanker traffic through the Strait of Hormuz eased concerns over energy supply disruptions,” she told Bernama.
At the time of writing, Brent crude fell by 1.96 per cent to US$75.57 per barrel.
Meanwhile, Japanese rubber futures traded range-bound as stronger demand from the European automotive sector continued to provide support to market sentiment.
The dealer said that market sentiment was further weighed down by concerns over growing expectations of further Federal Reserve (Fed) tightening and the new automobile policy in California.
“In the US, resilient consumer spending, sticky core inflation, and tight labour markets have supported growing expectations of further Fed tightening ahead of the Personal Consumption Expenditures (PCE) price index release.
“Major automakers warned that vehicle sales in California could be disrupted if new vehicle-tracking regulations are implemented without delay, potentially affecting automotive market activity,” she added.
However, further losses were cushioned by stronger-than-expected US manufacturing and services data, alongside encouraging demand from the European automotive sector.
At 3 pm today, the price of Standard Malaysian Rubber (SMR) 20 declined 3.5 sen to 940.5 sen per kilogramme (kg) while latex-in-bulk was down by three sen to 789.5 sen per kg.
-- BERNAMA
