LONDON, Sept 2 (Reuters) - Copper hit its highest since late
April on Thursday at $7,640 a tonne after stronger-than-expected
manufacturing data from the United States and China boosted
optimism over the demand outlook for raw materials.
Gains were limited ahead of a raft of U.S. data, however,
including home sales, productivity and factory orders numbers
later in the day and a key non-farm payrolls reading on Friday.
Signs of fresh weakness in the U.S. economy could cast
further doubt on the pace of the country's recovery, potentially
pressuring commodities prices.
"On balance the markets have reacted very positively to
better data and that is building on last week's firmer tone and
seems to be prompting fresh buying and short-covering," said
William Adams, an analyst at BaseMetals.com.
"So for the short term the rebound may have further to run -
much will probably depend on tomorrow's employment report."
PRICES
* Three-month copper CMCU3 on the London Metal Exchange
was trading at $7,631 a tonne at 0715 GMT compared with $7,606
at the close on Wednesday.
* Aluminium CMAL3 was at $2,110 a tonne from $2,108.
DATA/EVENTS
* Euro zone revised Q2 GDP, 0900 GMT.
* Euro zone PPI for July, 0900 GMT.
* Euro zone ECB rate announcement, 1145 GMT.
* U.S. weekly jobless claims, 1230 GMT.
* U.S. revised Q2 productivity, unit labour costs, 1230 GMT.
* U.S. Federal Reserve chair Ben Bernanke testifies before
Financial Crisis Inquiry Commission, 1300 GMT.
* U.S. factory orders for July, 1400 GMT.
* U.S. pending home sales for July, 1400 GMT.
* U.S. ICSC chain store sales for August.
[ECI/US] [ECI/EURO] [ECI/GB]
[M/DIARY] [MTL/DIARY]
MARKET NEWS
* The dollar was on the defensive on Thursday, retaining
most of the losses sustained the previous day when upbeat data
helped lure investors away from safe-haven currencies and
assets. [FRX/]
* Oil dipped as investors turned their attention to upcoming
U.S. employment reports, following gains of almost 3 percent a
day earlier after positive manufacturing data lifted spirits
across markets. [O/R]
* Asian stocks rose to a two-week high, with Japan's Nikkei
briefly rising more than 2 percent, as strong U.S. manufacturing
data further soothed worries about the global economy.
[MKTS/GLOB]
* European shares slipped on Thursday after making their
biggest daily surge since late May, on caution ahead of the
European Central Bank interest rate decision and U.S. pending
home sales. [.EU]
FUNDAMENTALS
* Japanese shipments of aluminium products rose 7.8 percent
in July from a year earlier to 179,619 tonnes, industry data
showed on Friday, underpinned by demand from the automobile
sector. [ID:nTOE67Q00W]
* India's state-run National Aluminium Co Ltd sold 3,000
tonnes of aluminium ingots at a premium of $95.13 per tonne over
the average LME cash price on a cost, insurance and freight
basis, a company source said on Thursday. [ID:nDEL003339]
TECHNICALS
* Copper support at $7,525, resistance at $7,635, 14-day RSI
at 72.5.
* Aluminium support at $2,035, resistance at $2,115, 14-day
RSI at 59.4.
(Reporting by Jan Harvey; editing by Keiron Henderson)
