Nickel settled -0.12% down at 893.10 tracking LME nickel prices which opened at $16,200/mt, with the high end $16,278/mt, finding support at $16,025/mt. Moody's downgraded ratings of 10 banks and 3 financial institutions in Italy by one or two notches yesterday, with the outlook negative. Germany delayed announcement whether the ESM and the new financial agreement comply with the constitution, so the ESM which could have take effect in July will be postponed by at least two months. Additional negative news was reported after opening. Moody's downgraded its outlook for global base metal industry from steady to negative, and Spanish 10-year government bond yields rose to 6.75%, while Ben Bernanke did not mention new monetary policies. LME base metals prices dropped sharply but then gained back losses, remaining fluctuating. Bernanke expressed in his testimony to Congress the Fed will take additional monetary stimulus to support slowing economy. He believes european debt crisis and uncertainty of US financial policies will cause financing condition to tighten, dragging down economic recovery. Expectations of additional easing policies grew due to pessimism towards economic outlook by the Fed. For today's session market is looking to take support at 890.5, a break below could see a test of 888 and where as resistance is now likely to be seen at 897.0, a move above could see prices testing 901.
Nickel trading range for the day is 888.03-901.
Nickel dropped tracking LME prices and weakness in other base metals counter after Bernanke's comments
Expectations of additional easing policies grew due to pessimism towards economic outlook by the Fed.
Moody's downgraded ratings of 10 banks and 3 financial institutions in Italy by one or two notches yesterday, with outlook negative.
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