METALS-Nickel soars as traders bet on electric car boom

SYDNEY, Nov 1 (Reuters) - Nickel rocketed to its daily limit in early trade on Wednesday, tracking overnight gains in London markets after the sector turned positive on new demand from electric vehicle battery manufacturers.

ANZ Bank commodities specialists noted the market was becoming increasingly confident about its place in the electric car movement, with producers and traders at the London Metal Exchange Week annual gathering speaking positively about the growth in demand expected from this sector.

UBS issued a client report designating nickel among its top commodity picks over the next two to five years "due to the game-changing opportunity from electric vehicles, a new source of demand."


* Three-month nickel on the London Metal Exchange was up 1.8 percent to $12,518 a tonne by 0147 GMT, building on a 5 percent gain overnight. The contract is at its highest price since mid 2015.

* The most-traded nickel contract on the Shanghai Futures Exchange stood 6 percent higher, its daily limit under trading rules, at 99,340 yuan($14,966.70)a tonne, the highest in nearly 11 months.

* SHFE LEAD, ZINC: ShFE lead and zinc also posted strong advances, up 2.8 and 2.4 percent, in line with firmer domestic steel prices.

* DOLLAR UP: The dollar edged higher on Wednesday, as investors awaited the outcome of the U.S. Federal Reserve's two-day policy meeting later in the session for clues about future tightening.

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* Asian shares looked set to extend their gains into a fourth straight day on Wednesday on the back of solid economic growth, while oil prices were on a bull run on hopes of an extension of output cuts by major oil producers.

DATA/EVENT AHEAD (GMT) 1100 U.S. MBA Mortgage Applications survey weekly

1215 U.S. ADP National Employment Oct 1345 U.S. Markit Mfg PMI Final Oct 1400 U.S. ISM Manufacturing PMI Oct


Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.6374 Chinese yuan renminbi)

(Reporting by James Regan; Editing by Vyas Mohan)