SHANGHAI, Jun. 25 (SMM) –
1. Trading volumes in the LME nickel market were up and positions down, but prices moved higher, a sign of position closing by short sellers. Technically, upward momentum is available and should help support short-term prices.
2. In Greece, the New Democracy party will now lead a pro-bailout coalition government and increase the likelihood Greece will remain in the euro zone.
3. Germany is planning to allow the EFSF/ESM to buy bonds on the secondary market, and Spanish 10-year bond yields fell back below 7%. One committee member from the European Central Bank said interest rates may be cut in July. All these actions are strong signals that governments are taking steps to resolve European debt issues.
1. The Fed announced it would extend the "Operation Twist" program through the end of the year, but this news was offset by the lack of QE3 consideration. Following the announcement, US stock markets and commodity prices moved lower, including nickel.
2. Production cuts or unit maintenance at many private stainless steel mills following the arrival of the peak power consumption and low demand period have reduced demand for nickel, and will dampen any upward price momentum.