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RTRS:METALS-Copper bounces back but caution remains
 
* Fed says prepared for more steps to aid U.S. economy
* Copper seen falling below $6,800 despite gains -technicals
* COMING UP: U.S. ADP employment report; 1400 GMT
By Marie-Louise Gumuchian
LONDON, Oct 5 (Reuters) - Copper bounced back from a five-day slide on
Wednesday, with prices of the red metal boosted by the Federal Reserve's promise
to launch more measures to help the fragile U.S. economy.
Three-month copper on the London Metal Exchange (LME) climbed to
$6,923.50 a tonne at 0915 GMT compared with Tuesday's close of $6,800. The
gains, which earlier saw copper rise some 3 percent to hit a session high of
$7,009.75 a tonne, were in line with stronger equity markets in Europe.
Fed Chairman Ben Bernanke said on Tuesday the U.S. central bank's policy
committee considers inflationary pressures well under control and given high
unemployment, would be ready to ease monetary conditions further following the
launch of a new stimulus measure in September.
That brought some comfort to investors in risky assets that have dumped both
commodities and equities in a market rout that saw copper slump in the five
sessions to Tuesday on worries a deepening debt crisis in Europe could hit the
global economy.
"This points to more risk appetite and after the strong losses over the
recent week, it is logical to see some bounce back, probably on bargain
hunting," Commerzbank analyst Eugen Weinberg said.
"We are not out of the woods yet."
European finance ministers agreed on Tuesday to safeguard their banks as
doubts grew about whether a planned second bailout package for debt-laden Greece
would go ahead.
Hours earlier French-Belgian municipal lender Dexia became the
first European bank to have to be bailed out due to the euro zone's sovereign
debt crisis.
Source