Nickel Price Sinks on Chinese Purchasing Managers’ Index

Bloomberg reported that ongoing manufacturing weakness in China brought nickel down for the first time in five days. The country’s Purchasing Managers’ Index clocked in at 50.8 in October, below the 51.2 median estimate found in a Bloomberg analyst survey.

As quoted in the market news:

‘The PMI will be enough to keep downward pressure on metals,’ said Daniel Hynes, senior commodity strategist at Australia & New Zealand Banking Group Ltd. ‘When you combine it with the stronger U.S. dollar coming through, base metals are probably looking a little bit shaky.’

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, gained 0.2 percent after climbing 1.2 percent last week. A stronger dollar makes commodities priced in the greenback more expensive in terms of other currencies and less attractive to investors seeking an alternative investment.

Nickel for delivery in three months on the London Metal Exchange slid 0.4 percent at $15,712 a metric ton by 3:22 p.m. in Shanghai. Aluminum reversed earlier losses to trade little changed at $2,039.50 a ton after closing on Oct. 31 at the highest in seven weeks.

Click here to read the full Bloomberg report.