SMM Nickel Market Morning Review (2013-7-8)

It was announced last Friday that US non-farm payrolls increased 195,000 in June, well above the 165,000 expected. The unemployment rate held at 7.6%, also beating the 7.5% forecast. These figures signal strong recovery in the US labor market, evidence of the US economic recovery as well. Thanks to this, the Dow Jones Industrial Average closed up 0.98% at 15,135.84 points. The NASDAQ gained 1.04% to finish at 3,479.38 points. The S&P 500 ended 1.02% higher at 1,631.89 points. On the other hand, recovery in the US job market raised anticipation that the Fed will end QE early, sending US government bond yields soaring. The US dollar index hit a three-year high of 84.56 before closing at 84.43. It is widely believed the US dollar index will extend gains for the near term.     

 

On July 8, spot nickel prices in China are expected to fall to RMB 94,000-95,500/mt.