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By Bloomberg

Nickel fell in London after Chinese manufacturing expanded at a slower rate than projected by analysts, casting doubt on the outlook for demand in the world's largest metals consumer.

An official manufacturing gauge released Nov. 1 came in at 50.8 for October, trailing the 51.2 median estimate in a Bloomberg survey of analysts. Levels above 50 signal expansion. An index of the six main metals traded on the London Metal Exchange fell for a second day on Oct. 31 even as the Bank of Japan increased monetary stimulus.

"There are concerns about economies slowing down, especially in Europe, and the market is still nervous about what's happening in China too," William Adams, head of research at Fastmarkets.com in London, said by phone.

Nickel for delivery in three months slid 0.6 percent to $15,690 a metric ton by 10:51 a.m. on the LME after four sessions of gains. Stockpiles of the metal monitored by the exchange climbed for an eighth session to a record 385,314 tons, daily data showed.

Prices also retreated as the dollar gained for a fourth session against a 10-currency basket. A stronger dollar makes commodities priced in greenbacks more expensive in terms of other currencies and less attractive to investors seeking an alternative investment.
Copper for delivery in three months rose 0.4 percent to $6,719 a ton on the LME. The metal fell for a second day in the prior session as workers called off a one-month strike at Freeport-McMoRan Inc.'s Grasberg copper mine in Indonesia, the world's second-largest.
Inventories of the metal tracked by the LME fell 0.3 percent to 162,100 tons. Futures for delivery in December added 0.3 percent to $3.055 a pound on the Comex in New York.

Zinc, lead, aluminum and tin rose in London.