RTRS:METALS-Copper at highest in more than a week, U.S. jobs awaited
* Copper on track for first weekly gain in three weeks
* Euro rises against dollar
* Coming up:U.S. non farm payrolls at 1300 GMT
By Harpreet Bhal
LONDON, Aug 2 (Reuters) - Copper rose to its highest level in more than a
week on Friday, as optimism about the outlook for the global economy gathered
pace, with U.S. labour market data due later in the session likely to provide
further direction for industrial metal prices.
Three-month copper on the London Metal Exchange rose in intraday
trade to its highest since July 24 at $7,050 a tonne. It traded at $7,020 a
tonne at 0947 GMT, up from a last bid of $6,998 a tonne on Thursday.
The metal used in power and construction is on track to rise 2.5 percent for
the week, its first gain in three weeks. It registered a monthly gain of 1.9
percent in July.
Factory activity in top metals consumer China was slightly stronger than
expected in July, U.S. manufacturing grew at its fastest in two years and
European factories snapped a run of declining output, offering some support for
metals demand.
Markets are now awaiting July U.S. non farm payrolls figures for further
signs of stabilisation in the U.S. economy.
"The data shows that the U.S. economy is coming out of the soft patch and
any number (for non farm payrolls) that is above consensus will be seen as
allowing the Fed to scale back on its stimulus," said Robin Bhar, analyst at
Societe Generale.
"What is supporting commodities is quantitative easing and any easing back
could have a temporary bearish impact. But people have to remember that if the
Fed scales back on stimulus it is because the economy is getting stronger. That
is good news."
Markets have been supported this week by a statement by the Federal Reserve
that the U.S. economy continues to recover but is still in need of support,
offering no signs that it is planning to curb its bond-buying stimulus at its
next meeting in September.
The European Central Bank (ECB)affirmed interest rates could fall further
from record lows.
Non-farm payrolls were expected to have risen by 184,000 in July, with the
jobless rate seen ticking down to 7.5 percent.
"If the non farm payrolls surprises on the upside, we could see a further
pick-up in copper prices but I think gains might be limited," said analyst
Natalie Rampono of ANZ in Melbourne.
"Our Chinese economists have highlighted that order books are still pretty
slow and the smaller-sized businesses are still struggling with tight credit
conditions," she said.
Nickel miners are clinging to plans to maintain production, despite a
growing supply glut and prices around four-year lows, raising the risk of more
writedowns and losses being unveiled in the current financial reporting season.
Metal Prices at 0950 GMT
Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T
Metal Last Change Pct Move End 2012 Ytd Pct
move
LME Alum 1812.75 0.75 +0.04 2073.00 -12.55
LME Cu 7018.00 138.00 +2.01 7931.00 -11.51
LME Lead 2115.75 9.75 +0.46 2330.00 -9.20
LME Nickel 13925.00 30.00 +0.22 17060.00 -18.38
LME Tin 20855.00 -65.00 -0.31 23400.00 -10.88
LME Zinc 1870.00 15.00 +0.81 2080.00 -10.10
SHFE Alu 14240.00 -5.00 -0.04 15435.00 -7.74
SHFE Cu* 50250.00 180.00 +0.36 57690.00 -12.90
SHFE Zin 14525.00 5.00 +0.03 15625.00 -7.04
** Benchmark month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07
