SHANGHAI, Dec. 8 (SMM) -- US president Barack Obama reached a consensus with Republican Party on extending preferential tariff cut policy which was adopted during Bush administration. The agreement increased investors’ risk appetite for global equity markets, commodity markets and high-risk asset investment. Yields of the US treasury bond climbed in response, and recorded the largest growth since June 2009.
LME base metal prices surged in response. LME nickel market opened at a intraday low at USD 23,600/mt overnight and fluctuated on upward track to USD 24,200/mt. However, market expectation over increasing inflationary pressure from CPI to be released this week is exacerbating, triggering concern that further tightening measures may be released. In this context, LME nickel prices fell from high to USD 24,200/mta and closed at USD 23,830/mt, up by USD 131/mt or up by 0.55% from a day earlier. Daily trading volumes were 2,586 lots and positions were 95,686 lots.
SMM believes that LME nickel prices will move between USD 23,000-24,000/mt on December 8th.
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