SHANGHAI, Dec. 18 (CBI China) -- Yesterday, the news the Federal Reserve cut interest rates unprecedentedly was absorbed, the bad Quarterly Bulletin of Morgan Stanley and Goldman Sachs resulted in selling out financial shares, U.S. stocks closed down again. Commodity prices slumped to USD 40/barrel after OPEC announced production cuts at 2.2 million barrels per day, indicating intensified economic worries. Metal fluctuated slightly. After fell in the early trading, the decline slowed down supported by weak U.S. dollar.
From the trading, the metal's positions continued to fall, indicating capital did not flow into the commodity market when the U.S. dollar fell, on the contrary, the will of profit-taking strengthened. It is expected that before the New Year, metal prices will remain the trend of slight fluctuation with a small decline affected by weak fundamentals, the depreciation of the dollar, the increase in stocks, funds profit-taking and other factors.
Nickel prices have experienced significant short positions, leaving a long upper shadow technically, tonight prices are expected to decline slightly, with closing prices around USD 9,500/mt.
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