SHANGHAI, May 28 (SMM) --
1. The latest EU summit has concluded and this issue, plus Greece's general election have already been absorbed by markets. Risk-aversion currencies will gain temporary popularity, but will also be weighed down since US markets will be closed on Monday due to a holiday, with some shorts expected to leave the market after profit-taking.
2. LME nickel prices rallied to the 5-day and 10-day moving averages on Thursday.
1. European leaders reiterated the desire for Greece to remain a part of the euro zone, but concerns over the European debt crisis did not ease due to conflicting views on economic growth and financial reconciliation.
2. HSBC's China May PMI fell from 49.3, to 48.7, while the PMI in euro zone fell to 45.9, its lowest level since June 2009.
3. Unofficial support for Greece's left wing alliance which opposes credit tightening policies was 30%, over 4% above the New Democratic Party level, while support for Pan-Hellenic Socialist Movement was 15.5%. If these results were official, Greece would exit the euro zone and such action would negatively affect global markets.
4. LME nickel prices will not likely rebound anytime soon, but continue to fall.
In general, pessimism prevails in the market. LME nickel prices should inch down in the coming week, moving below USD 17,000/mt.