LONDON: Copper edged higher on Thursday, helped by a stronger euro on expectations Spain would seek a bailout to rescue its economy, although gains were capped by uncertainty about global growth while trading volumes were low as China remained on holiday. Benchmark copper on the London Metal Exchange (LME)shook off losses from the previous session to rise to $8,318 a tonne at 0917 GMT, up 0.3 percent from Wednesday's close of $8,290. The euro rose against the dollar, with investors' keeping a close eye on possible financial aid for Spain as the European Central Bank (ECB) gathers for a rate-setting meeting. The ECB is expected to hold interest rates to allow time for new details to emerge on the health of the euro zone economy and for Spain to ask for aid. A rate decision is due at 1145 GMT with a news conference at 1230 GMT. "It (a potential bailout for Spain) removes some uncertainty in the market. It is a not a question of if but when for Spain (to ask for a bailout) and that will be seen as a huge relief for the market," said Robin Bhar, analyst at Societe Generale. "But the potential upside for copper is pretty limited whilst there is uncertainty about China's growth and US growth and with the euro zone in recession, and that is going to keep a lid on rallies." Trading volumes were thin as China is still on a public holiday. China is the world's top consumer for refined copper, accounting for as much as 40 percent of demand. Investors are likely to look ahead to non farm payrolls data from the United States, due on Friday, for indications of a recovery in the country's key labour market. Sentiment surrounding the US labour market was boosted in the previous session after data showed private sector hiring rose by a better-than-expected number in September. Activity in the vast services sector also picked up, suggesting the economy remained on track for modest growth. "We think the slant of the market after the payroll numbers on Friday will really be the action one should pay attention to. For now look at continued back and forth as the market consolidates terrific gains made since August," RBC Capital said in a note. LOWER PREMIUM In industry news, Pan Pacific Copper Co, Japan's biggest copper smelter, is offering a term copper premium of $85 per tonne for clients in China for 2013 shipments, down from $100 in 2012, a source familiar with the matter said. The lower premiums reflect slowing demand growth in the world's top consumer of metals. Uncertainty about the outlook for physical demand continues to sour sentiment for the metal used in power and construction as global economic growth struggles. "Overall we expect Q4 prices to continue to take cues from the macro rather than the physical market," said James Luke, a Hong Kong-based commodities analyst at China International Capital Corporation (CICC). "Prices will be well supported but I don't expect physical demand to surprise on the upside and that should limit prices relative to other more purely investor-driven metals such as gold." In other metals, battery material lead rose to $2,310 a tonne from Wednesday's close of $2,306, while zinc was at $2,083 from $2,082 at the close on Wednesday. Nickel climbed to $18,673 from $18,525. Aluminium rose to $2,107.50, from a last bid of $2,102.50 on Wednesday, and tin climbed to $22,250 from a last bid of $22,100.

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