Nickel rises on optimism about global demand

Nickel prices rose on Wednesday, lifted by markets' optimism about the global demand for industrial metals, after central banks started to counter the impact of the coronavirus outbreak.

The US Federal Reserve yesterday cut the interest rates by 50 basis points to between 1.25% and 1.00%.

The decision came after a similar one from Australia and Malaysia, in attempts to stimulate their economies and to counter the economic impact of the coronavirus outbreak.

Analysts expect additional interest rate cuts in the short-term to support the global economy, which will also support demand for industrial metals, including nickel.

The dollar index rose 0.4% to 97.5 points at 14:27 GMT, with a high of 97.5 and a low of 97.1.

Nickel spot futures (used in the steel industry) rose by 1.5% to trade at $12,618.3 per tonne.