SHANGHAI, Jun. 2 (SMM) -- LME nickel prices opened at USD 21,050/mt yesterday, and closed at USD 20,500/mt, down USD 550/mt from a day earlier, with highest price at USD 21,050/mt and lowest price at USD 20,250/mt.
China released two indicators that used to gauge manufacturing activities on Tuesday, manufacturing activities continued to expand, but the growth pace slowed down, showing preliminary effect of China's tightening monetary policies. Market sentiment is dampened due to China's lower-than-expected economic data.
The European Central Bank warned on Monday that euro zone banks face up to 195 billion euros in a "second wave" of potential loan losses over the next 18 months due to the financial crisis, and disclosed it had increased purchases of euro zone government bonds. Profitability of European banks will be negatively affected. Market concerned that the European sovereign debt crisis may cause big losses for European banks. Meanwhile, lower-than-expected economic data from China triggered investors' concern over recovery of global economy.
LME nickel prices received support at USD 20,450/mt, attracting transactions at this level, but later slipped in the afternoon session. It is expected that prices will move in the USD 19,980-21,000/mt range on June 2nd.
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