REU: METALS-LME copper pares sharp gains; ShFE seen up
SINGAPORE July 22 (Reuters) - Shanghai copper was seen
rising Thursday, chasing a 3 percent London gain in the
previous session, but the upside may be capped by Fed chairman
Ben Bernanke's comments on the "unusually uncertain" outlook
for the U.S. economy.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange CMCU3
fell 0.6 percent to $6,810 a tonne at 0020 GMT, after rallying
3.2 percent in the previous session to a three-week high.
* Bernanke said in testimony before the Senate Banking
Committee that the U.S. economy faces "unusually uncertain"
prospects and that the central bank was ready to take further
steps to bolster growth, if needed. [ID:nN21165172]
* When Shanghai closed on Wednesday, LME copper stood at
$6,670, suggesting a rally of around 2 percent.
* Chinese refined copper imports fell for a third month
running in June, down 24 percent from the previous month but
falling Shanghai stocks and rising domestic meant implied
demand for the metal remained firm, and analysts said the
slowdown in buying from the international market in recent
months was supportive of a longer term rally. [ID:nTOE66K02T]
* Analysts have been worried about slowing Chinese demand
after the nation moved to rein in certain sectors, including
commodity-intensive areas like construction.
* China's gross domestic product is forecast to grow about
9.5 percent this year, the State Information Centre, a
government think tank, said in a report. [ID:nBJD000032]
* China's GDP grew at an annual rate of 10.3 percent in the
second quarter of this year, slowing from the first quarter's
brisk 11.9 percent pace as Beijing steered monetary and fiscal
policy back to normal after a record credit surge to counter
the global crisis. [ID:nTOE66D06L]
* In the first four months of the year the copper in China
market had moved into a deficit of 67,000 tonnes, from a 74,000
surplus in the same year-ago period. [ID:nLDE66K1NI]
MARKETS NEWS
* Oil prices were steady after Wednesday's more-than 1
percent fall, slipping after two straight higher closes on
Bernanke's concerns about the economy and on data showing U.S.
crude oil inventories unexpectedly rose last week. [O/R]
* The euro fell sharply against the dollar while the yen
rallied on Wednesday on the Bernanke comments and dampened risk
appetite. [USD/]
* Bernanke's dour assessment of the U.S. recovery also hit
U.S. stocks on Wednesday, as his comments rattled investors.
[.N]