SMM Morning Review - 2010/8/30 Nickel Market

SHANGHAI, Aug. 30 (SMM) -- Last Friday, LME nickel prices opened at USD 20,552/mt and closed at USD 21,035/mt, by USD 483/mt from a day earlier. Daily trading volumes were 2,077 lots and positions were 98,649 lots. LME nickel inventories were down by 96 mt to 118,860 mt.

LME base metal prices ended with gains last Friday due to a stronger Euro and mildly positive comments from Federal Reserve chairman Bernanke. The US Federal Reserve chairman Bernanke stated on last Friday that economy recovery is better than expected and the Federal Reserve will take further measures to boost economy when necessary. Comments from the Bernanke buoyed sentiment on the US equity markets and the euro, and the Dow Jones Industrial average rebounded above 10,000 points again.

The economic data from the US were still mixed. The US Department of Commerce announced last Friday that a downwards revision of U.S. second quarter gross domestic product was up by 1.6% and the earlier reading was up 2.4%, while the previous estimation was up 1.4%. The revising of US second quarter GDP deflator was up 2.0%, and the earlier reading was up 1.8%, while the previous estimation was up by 1.8%.  The Reuters/University of Michigan consumer sentiment index for August dropped to 68.9 from an earlier reading of 68.9, and the previous estimation was 69.6.

LME market is closed off on Late Summer Holiday on August 30.

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