WSJ:BASE METALS: Shanghai Metals Rise Ahead Of US Jobs Data, China CPI
SHANGHAI (Dow Jones)--Base metals on the Shanghai Futures Exchange rose Friday in response to overnight gains on the London Metal Exchange, which were boosted by encouraging U.S. employment data.
Benchmark SHFE September copper settled 1.6% higher at CNY72,050 a metric ton.
Bullish sentiment on global metals markets kept metals firmly in positive territory, as investors regained confidence over the health of the world's largest economy after it released a couple of set of better-than-expected employment data.
New claims for unemployment benefits fell for the first time in three weeks, easing by 14,000, to 418,000 during the week ended July 2, according to a Labor Department report, beating an expected drop of 3,000.
A separate report, published by Automatic Data Processing Inc. and consultancy Macroeconomic Advisors, showed the private sector added 157,000 jobs last month, well above economists' expectations for a gain of 95,000.
"The fact that LME copper rose to $9,700 a ton last night was encouraging enough for Chinese investors to just follow suit," Everbright Securities Futures analyst Xu Yongqi said.
"After that, all eyes will be on the nonfarm payrolls data (due) tonight."
However, analysts said a tepid spot market and persistent concerns over further monetary tightening in light of accelerating inflation may cap potential gains from upbeat U.S. economic data.
China's inflation in June may accelerate to 6.3%, its fastest pace since July 2008 and up from May's 5.5%--and it may stay high this month before decelerating starting in August, according to a Dow Jones Newswires poll of 16 economists. China is due to release its consumer price index this Saturday.
Copper traded at the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, was quoted at CNY71,800-CNY71,850/ton, up from CNY70,750-CNY70,800/ton Thursday.
Three-month London Metal Exchange copper ended Thursday's afternoon kerb $219 higher at $9,739/ton.
It was quoted 0.1% lower at $9,725/ton around 0700 GMT, when the SHFE closed.
SHFE lead settled 0.5% higher, aluminum added 0.3% and zinc closed 0.5% higher.
Friday's settlement prices in yuan a ton and LME late kerb prices from Thursday in dollars a ton:
SHFE LME
Copper Sep 72,050 Up 1,100 3Mo 9,739 Up 219
Aluminum Sep 17,450 Up 60 3Mo 2,590 Up 34
Zinc Sep 18,230 Up 95 3Mo 2,411 Up 31
Lead Sep 17,385 Up 85 3Mo 2,720 Up 21.5
-Yue Li contributed to this article; Dow Jones Newswires; (8621) 6120 1200; yue.li@dowjones.com
