Home > Community > Metals & Mining > METALS-Shanghai copper to edge lower; eyes on data

METALS-Shanghai copper to edge lower; eyes on data

Published: 05 Nov 2009 17:46:02 PST

SHANGHAI, Nov 6 - Shanghai copper is expected to edge lower at the opening, tracking the LME's small fall in the previous session, weighed down by growing inventories, as investors eyed key U.S. economic data due later on Wednesday. FUNDAMENTALS

* Three-month copper on the London Metal Exchange fell $40 to close to $6,530 a tonne on Wednesday, but edged up to $6,540 in after-hour trading.

* When Shanghai closed on Wednesday, LME copper stood at $6,515 a tonne.

* LME copper stocks climbed by 5,775 tonnes to 379,825 tonnes on Thursday, their highest level since early May, triggering concerns of an oversupply and putting pressure on prices.

* But sentiment was supported by better-than-expected U.S. jobless data and non-farm productivity.

* Port workers in Peru, one of the world's top minerals exporters, had started a 2-day nationwide strike to protest the government's privatisation push and press it to revoke a recent agreement for the modernisation of an important port.

* The U.S. is expected to release economic data including October employment and wholesale inventories later in the day.

MARKET NEWS

* The U.S. dollar held steady on Friday with investors consolidating positions ahead of October U.S. non-farm payrolls data, which is expected to shed light on the health of the economy.

* U.S. stocks jumped on Thursday, pushing the S&P 500 up for a fourth day, as economic data boosted confidence in the recovery and strong results from Cisco Systems suggested a rebound in technology spending.

DATA/EVENTS

* The following data is expected on Friday:

- Japan Cabinet meeting followed by news conferences (N/A)

- Australian Prime Minister Rudd speaks (0315 GMT)

- Japan leading/coincident indexes for Sept (0500 GMT)

- First day of G-20 meeting in St Andrews, Scotland (N/A)

- Swiss Oct jobless (0645 GMT)

- UK Oct producer prices (0930 GMT)

- German Sept industrial orders (1100 GMT)

- U.S. employment report for Oct (1330 GMT)

- U.S. wholesale inventories for Sept (1500 GMT)

- U.S. consumer credit for Sept (2000 GMT)

RELATED NEWS > METALS-Copper falls, rising inventories signal > Ecuador "very close" to resume metals exploration > Peru port workers start strike on privatization > Miner asks Peru to remove protesters