* Copper down 0.9 pct on LME, up 1 pct on Shanghai Exchange
* Boost to euro-zone rescue fund supports markets
* Moody's cuts Spain's ratings, puts French banks on watch
* Coming Up: U.S. CPI for September; 1230 GMT
(Updates prices, adds analyst comment)
SHANGHAI, Oct 19 (Reuters) - Copper edged down in London on
Wednesday, adding to overnight losses on concern that the
euro-zone debt crisis may drag on after Moody's Investors
Service cut Spain's sovereign ratings.
Prices though should be underpinned by a report that Europe
will strengthen the region's rescue fund, while strikes at two
Freeport-McMoran Copper & Gold Inc. mines threaten
supply.
Three-month copper on the London Metal Exchange fell
0.9 percent to $7,383 a tonne by 0432 GMT.
The most-active January copper contract on the Shanghai
Futures Exchange SCFc3 rose 1 percent to 54,220 yuan
($8,496.70) per tonne, catching up to gains in London futures
since closing down 3.7 percent in the previous session.
"We've seen some interest in the 'sell London, buy
Shanghai'-type of arbitrage trading in China at these price
levels," said Li Rong, an analyst at Great Wall Futures in
Shanghai.
Markets were given a shot in the arm after Britain's
Guardian newspaper reported on Tuesday that France and Germany
had agreed to boost a euro zone financial rescue fund to 2
trillion euros ($2.76 trillion), pushing U.S. stocks and the
euro higher despite doubts about whether there was such an
agreement.
But with Moody's on Tuesday cutting Spain's sovereign
ratings by two notches and casting doubt on France's triple-A
credit rating, the crisis, and its impact on commodity markets,
looks set to rumble on.
News that Freeport-McMoRan has threatened to close its
strike-hit Grasberg mine in Indonesia, the world's second
largest, supported prices.
The company's Cerro Verde mine in Peru has also been plagued
by a labour dispute. Talks between management and union leaders
are scheduled for Thursday in what would be a final bid to end a
20-day-old pay strike.
Traders said there has been some restocking by Chinese
consumers recently, reflected in a more than 600 yuan premium of
Shanghai's front-month contract versus the third month, near the
widest since June and indicating steady demand for spot metal.
Speculators on COMEX have net short positions on copper
futures, data from the Commodity Futures Trading Commission
showed.
Base metals prices at 0432 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7383.00 -66.00 -0.89 -23.09
SHFE CU FUT JAN2 54220 540 +1.01 -24.54
LME Alum 2214.25 6.25 +0.28 -10.35
SHFE AL FUT DEC1 16470 70 +0.43 -2.20
HG COPPER DEC1 333.70 -2.30 -0.68 -24.83
LME Zinc 1868.25 -13.75 -0.73 -23.87
SHFE ZN FUT JAN2 14645 130 +0.90 -24.80
LME Nickel 19100.00 -50.00 -0.26 -22.83
LME Lead 1933.50 8.50 +0.44 -24.18
SHFE PB FUT 14500 70 +0.49 -20.98
LME Tin 21550.00 205.00 +0.96 -19.89
LME/Shanghai arb 883
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month
($1 = 6.381 Chinese yuan)
(Reporting by Carrie Ho; Editing by Michael Urquhart)
