JPM Indo: metals - mining talk, buy ANTM (and INCO)

* LME base metal futures closed mostly higher. Nickel rallied 3.2%. A break-out event for the technicians out there.

* Michael Gambardela (North America Metals & Mining) – Steel (stock) momentum turning positive. The market momentum is turning from ultra-bearish to bullish and recently hit an inflection point.

* Nathan Zibilich (China Metals & Mining) – We believe China’s steel industry, like a trooper, is ready to storm back. The Chinese steel industry is at a positive inflection point as 40% of the mills have cut production.

* JPMorgan Europe strategist Mislav Matejka – We think the first signs of a turn in Chinese policy stance towards being more market friendly are here. The 7-day repo rate has halved to 1.65% following RMB 915bn liquidity injection since May. We continue to see Metals&Mining as the main beneficiary of a lift in sentiment toward EM.

* A strong economic report in Germany kick started a day of solid gains for U.S. equities however the upside was held in check as investors appeared hesitant to take positions before tonight’s FOMC meeting and the potential launch of [the] “QEII.”