[Ni] SMM Morning Review - 2009/10/27 Nickel Market

SHANGHAI, Oct. 27 (SMM) -- LME nickel prices opened at USD 19,250/mt yesterday, with the highest price of USD 19,452/mt and the lowest price of USD 18,590/mt, and closed at USD 18,600/mt.

    Since last night market players were concerned that the tax preference provided by the Government for home-buyers was coming to an end, coupled with market speculation that the US government may require US banks to raise more capital, resulting in sell-offs of stocks of banks and builders, and the US stocks plunged as a result. The interest in risk avoidance propelled the US dollar index to rebound. Meanwhile, the US dollar has been in oversold position recently, resulting in significant growth in the US dollar index, and base metal prices were dampened heavily last night.

    The US dollar index is expected to re-enter the downward track after rebounds to 76 points, and metal prices will have upward momentum after reasonable reductions, so LME nickel prices are expected to move in the USD 18,650-19,120/mt range today.

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