Copper prices steadied on Tuesday after workers at the world's third largest copper mine in Indonesia threatened to go on strike indefinitely from Sept.15 if their demands for a pay rise were not met.
But lingering fears of a global economic slowdown due to uncertainty involving the United States and Euro zone countries are expected to limit gains.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange rose 0.2 percent to $8,981.75 a tonne by 0100 GMT, after hitting one-week lows in the previous session and closing down 1.3 percent.
* The most-active November copper contract on the Shanghai Futures Exchange SCFc3 edged up 0.04 percent to 67,130 yuan per tonne, after falling 1.1 percent in the previous session.
* Global growth in services came to a virtual standstill last month as new business all but dried up, adding to fears that the world economy is facing another recession.
* Freeport McMoRan Copper & Gold's Indonesia mine workers strike indefinitely from Sept. 15 unless the firm gives them a pay rise, a union official told Reuters on Monday, a move that could hurt supply if it happens.
* Deputy heads of the financial regulatory agencies of China, Japan and South Korea plan to hold a conference call early on Tuesday to discuss better ways to deal with the current uncertainty involving the United States and euro zone countries.
* The current and incoming heads of the European Central Bank demanded on Monday that European governments quickly strengthen a regional bailout fund and press ahead with wider reforms.
* Business picked up in Europe's stores in July with shoppers spending more freely, data showed, while offering little hope the region can pull clear of a widely anticipated growth slowdown in coming months.
MARKET NEWS
* Asian shares fell and the euro slipped on Tuesday amid fears that Europe's sovereign debt troubles are worsening and could trigger a second full-blown banking crisis.
* The euro wallowed at one-month lows against the greenback in Asia on Tuesday, while commodity currencies nursed heavy losses as concerns about the health of the global economy prompted investors to dump riskier assets.
DATA/EVENTS (GMT):
0430 Australia RBA cash rate Final Sep
1400 U.S. Employment Index Aug
1400 U.S. ISM N-Mfg PMI Aug
1400 U.S. ISM N-Mfg Bus Act Aug
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month
