LME Nickel futures gained significantly near by 8 percent last week - Geojit Financial
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Nickel plunged to a one month low due to China intervention on commodity prices to boost domestic supply and curb speculation, but tight supplies and easing inflation fears limited further selloffs and turned prices higher.
Global Economy
* Global equities were seen steady on reopening economies after COVID-19 lockdowns and calmness in inflation fears. US Dow Jones index gained near to a percent. European bourses gained higher. Where India’s Sensex advanced near to 2.00 percent, while China’s SSE showed a powerful move by gaining more than 3.00 percent.
* China barred banks from selling commodities-linked products to retail buyers
* US President Joe Biden proposed a $6-trillion budget for coming fiscal year.
* China’s industrial profits growth slowed in April on amid high commodity prices.
Currencies
* U.S. dollar closed on a flat note near to this year low in previous week against the basket of rivals
* Euro inched up and managed to close on positive territory against dollar by 0.08 percent last week. Chinese Yuan inched up by 1.04 percent, while Japanese Yen slumped 0.79 percent against dollar.
* Indian Rupee gained to more than two month high by 0.58 percent and settled at 72.4 marks against dollar.
Nickel
* LME Nickel futures gained significantly near by 8 percent last week while SHFE Nickel futures limited its gains near to 3.00 percent.
* In MCX, Nickel near month futures prices regained above 1300/ kg by advancing more than 6.00 percent.
Outlook
The post Covid global economic recovery and the need of commodities likely to support the entire base metal complex and thus the need of Nickel. A firm demand recovery from China, US and EU and concerns over supply from the top producer Indonesia also aiding the price sentiments. On the technical side, if LME prices break above $18200 rallies would continue towards $20000 or more. Downside reversal is seen only a close below $15800.
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