SHANGHAI (Reuters) - London copper prices edged down on Friday, weighed down by China's warning against relaxing curbs on the property sector, a move many investors favor as a quick way to boost domestic consumption. Recent weak U.S. data that underscores a fragile U.S. economic recovery also dampened sentiment amid investor worries about a global economic slowdown. "The government's latest comments on property purchase curbs dashed the hopes of those who were looking for a reversal on current restrictions, which will likely boost metals demand from construction and household appliances," said CIFO Futures analyst Zhou Jie. Beijing issued a firm reminder to local governments to keep clamping down on property speculation, underlining official concerns about renewed inflationary pressures even as the broader economy slows. Three-month copper on the London Metal Exchange fell 0.1 percent to $7,719.75 per metric ton (1.1023 tons) by 3.29 a.m. EDT after touching a two-week high of $7,813 on Thursday, its highest since July 3. It is on track to post a weekly rise of 0.2 percent in its second such increase in a row. From a technicals perspective, after London copper failed to guard its position above the $7,800 resistance level, it fell back to its previous range of $7,600 to $7,800, Zhou said. "Today's movements reflect this," he added. Reuters technical analyst Wang Tao expects LME copper to retrace to $7,697 per metric ton due to a resistance zone of $7,823-$7,839. The most active November copper contract on the Shanghai Futures Exchange fell 0.6 percent to 55,910 yuan ($8,800) per metric ton, pushed down by Shanghai equities amid thin trading volumes. Shanghai copper is up 0.8 percent on the week. Traders said contracts' real trading volumes were low as Chinese speculators were still focused on agricultural futures. "Taken at face value, Shanghai copper trading volumes of over 300,000 lots today were already relatively small. And this number includes open positions being moved to November," said one trader. Worries over a slowdown in the U.S. economy rose after data showed factory activity in the Mid-Atlantic region contracted in July for a third straight month and that new claims for jobless aid surged last week. This offset a spot of good news from the euro zone, where German Chancellor Angela Merkel easily won a parliamentary vote on a euro zone rescue package for Spanish banks on Thursday, and from Japan, where a poll showed big manufacturers' outlook improving slightly in July. Looking forward, many investors are betting on new Chinese stimulus measures this weekend after Premier Wen Jiabao said Beijing needed to step up efforts to create jobs. "We can't rule out the possibility of Beijing rolling out more monetary easing or investment policies soon, which will push base metals prices higher," said Wan Ling, an analyst with consultancy CRU Group.

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