SHANGHAI, Nov. 8 (SMM) -- LME nickel market overnight opened at USD 18,800/mt, with the highest and lowest level of USD 18,805/mt and USD 18,530/mt, respectively. Finally, LME nickel market closed at USD 18,625/mt, down USD 252/mt from a day earlier. Trading volumes were 855 lots, down by 886 lots. Positions were 99,016 lots, up by 393 lots. Inventories were 85,056 mt, down by 420 mt.

LME nickel market overnight fell back from highs during Asian trading hours due to a strong US dollar, down as low as USD 18,530/mt. During European trading hours, LME nickel prices pared some losses, moving between USD 18,600-18,800/mt. Finally, LME nickel prices closed at USD 18,625/mt, down USD 252/mt.

On Monday, the yield for Italian 10-year bonds rose to a new high. Investors worried about the spread of the European debt issues to Italy. Coupled with lower-than-expected economic data from the Euro zone, market sentiment was depressed, negatively affecting the Euro and equities. Particular attention should be paid to the release of major economic data on November 9th, including CPI, which is expected to drop. Inflation pressures in China are expected to fall significantly during 4Q, and Chinese Government will make small adjustments to its monetary policy, which will further loosen cash flow. Market sentiment will be cautious before the announcement of the data.

The European debt issues remain a major factor behind low market sentiment, and the Italian debt issues has reignited market worries. On Tuesday, LME nickel market will move between USD 18,000-19,000/mt, with great resistance at above USD 19,000/mt. In the domestic nickel market, prices will move between RMB 136,500-139,000/mt on Tuesday due to slight declines in the LME nickel market overnight.