[Ferro-Alloys.com]Nickel settled down -1.36% at 572.70 amid slowing Chinese demand. Trade is expected to wane ahead of Lunar New Year, which will shut China for a week from Monday. Helping to revive commodities demand, China said it would reduce the minimum down payment required for first- and second-time home buyers in most cities, a move aimed at clearing a housing glut in regions outside major centers. 

 

Activity in China's services sector expanded at its fastest pace in six months in January, a private survey showed, helping to offset weakness in the vast manufacturing sector that has weighed on the world's second-largest economy. While LME nickel climbed 0.7 percent, paring 2.3-percent losses from the session before after a large stock build stoked supply worries. In US manufacturing activity contracted in January for a fourth straight month as factories grappled with a strong dollar and lower oil prices forced energy firms to further cut spending, but the pace of the decline appeared to be slowing. On Tuesday, investors continued to react to a closely watched speech by Fed vice chair Stanley Fischer on the possibility that the Federal Open Market Committee could delay its next interest rate hike beyond the first quarter. 

 

At an address before the Council of Foreign Relations in New York, Fischer noted that further declines in oil prices and a persistently strong dollar could suggest that inflation will remain lower than the Fed previously anticipated. Technically market is under fresh selling as market has witnessed gain in open interest by 2.44% to settled at 18557 while prices down -7.9 rupee, now Nickel is getting support at 567.2 and below same could see a test of 561.7 level, and resistance is now likely to be seen at 583.1, a move above could see prices testing 593.5.

 

 

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