SHHANGHAI, Jan. 6 (SMM) -- LME nickel prices opened at USD 18,800/mt and closed at USD 18,600/mt overnight, down USD 175/mt from a day earlier, with the highest price at USD 18,800/mt and the lowest price at USD 18,450/mt. Daily trading volumes were 1,500 lots, down 675 lots. Positions were 107,921 lots, up 455 lots. LME nickel inventories were 89,838 mt, up 288 mt from a day earlier.

LME nickel prices fluctuated narrowly after slight decline during the Asian trading hours. However, LME nickel prices were weighed down to close at USD 18,600/mt, down USD 175/mt from a day earlier during the European trading hours, due to significant decline of subscription rate of French government bond.

Financial market swung widely on Thursday night. LME base metal prices slumped along with non-US dollar currencies due to ongoing concern over the European debt crisis. However, better-than-expected initial jobless claim from the US suggested improvement in the US employment market. In response, market sentiment was boosted, and the US equity market closed wit gains on Thursday. The improvement in the US employment data eased market concern over the European debt crisis, resulting in rebound in US equity market, which boosted LME base metal prices to certain. However, most LME base metal prices still closed with slight losses overnight. It is expected that transactions will be cautious before the announcement of US non-farm employment data scheduled to release on Friday, and Shanghai base metal prices will slip slightly on Friday.

Players will wait for the US non-employment data, and market concern over the European debt crisis will continue. SMM expects that LME nickel prices will continue to fluctuate on Friday, with resistance at USD 19,000/mt and support at USD 18,300/mt. In China’s domestic nickel spot market, overnight LME nickel price decline will drag down spot nickel prices to move in the RMB 129,000-131,000/mt range.