METALS-Shanghai copper limit up chase LME surge

SINGAPORE, Feb 25 (Reuters) - Shanghai copper futures
rallied by their 5 percent daily limit on Wednesday, chasing
overnight gains in London following comments by Fed Chairman
Ben Bernanke that the U.S. could claw its way out of recession
by year-end.

FUNDAMENTALS

* Shanghai copper for delivery in May SCFc3 rose 5
percent to 27,930 yuan a tonne from Tuesday's settlement, when
the market dipped 2.7 percent. By 0124 GMT, prices eased to
27,580 yuan.

* Copper on the London Metal Exchange MCU3 rose $45 or
1.4 percent to $3,330 a tonne following a $54 gain overnight.
After the evening kerb close, copper accelerated gains to end
the longer, electronic trading session at $3,370, up 4.3
percent on the day.

* Aluminium MAL3 rose $6 to $1,335. On Tuesday the metal
dipped to $1,279, its lowest since November 2001, before
gaining confidence with the rise in equities.

* Despite the glimmer of hope offered by Bernanke, economic
data remains weak. The U.S. home price index showed its biggest
drop in history in December and consumer confidence plummeted
to a record low.

* Data from Asia also painted a bleak picture. Data on
Tuesday showed Japan's output of copper products in January
plunged to its lowest since 1975 as the economic crisis crimped
demand, and industry officials said it would be some months
before consumption picks up. [ID:nT370874]

MARKETS NEWS

* Bernanke expressed faith that the U.S. banking system
could be stabilised: "If I thought the banks were irrevocably
damaged, I would have a different view, but I do believe our
major banks have significant franchise values," he said in
testimony before the Senate Banking Committee in Washington.
[ID:nN24405808]

* The Dow Jones industrial average .DJI closed up 236.16
points, or 3.32 percent, at 7,350.94. The Standard & Poor's 500
Index .SPX rose 29.81 points, or 4.01 percent, to 773.14. The
Nasdaq Composite Index .IXIC added 54.11 points, or 3.90
percent, to 1,441.83.

* U.S. crude oil CLc1 held steady in Asia at $39.93 after
rising almost 4 percent on Tuesday, while gold XAU= rose 55
cents to $963.00 an ounce.

DATA/EVENTS

* The following data and events are expected on Wednesday:

- U.S. President Barack Obama addresses a joint session of

Congress.

- Federal Reserve Chairman Ben Bernanke testifies on
monetary policy before the House Financial Services
Committee.

- Germany Q4 detailed GDP at 0700 GMT

- UK Q4 GDP at 0930 GMT

- U.S. existing home sales for January at 1500 GMT
RELATED NEWS > METALS-Aluminium claws back from 7-yr low as
Wall S[nLO652904] > OZ Minerals says talks with lenders very
positive [nSYU006089] > Peru mining minister sees investments
up in '09 [nN24432906] > With deal scuttled, HudBay, Lundin
face uncertaint[nN24527890] > Codelco plant bidders seek
breather for financing [nN24409167] > Fear of commodity
speculators will return - FOA [nLO616870] > Rio Tinto says
committed to Indonesia nickel proje[nJAK417869] > Japan Jan
copper product output hits 33-year low [nT370874]
PRICES
Base metals prices at 0124 GMT
Metal Last Change Pct chg Day ago pct MA 30
RSI LME copper $3,330.00 $45.00 +1.37% +3.06% $3,336
54
LME alum $1,335.00 $6.00 +0.45% +3.65% $1,385
46
LME zinc $1,115.00 $4.00 +0.36% +1.55% $1,164
45
ShFE copper 27,580 1030 +3.88% +1.10% 27,310
54
ShFE alum 11,735 275 +2.40% +1.34% 11,809
49
ShFE zinc 10,290 185 +1.83% +0.59% 10,498
50
Currencies
Euro/dlr $1.285 $0.015 +1.14% +0.32%
(Reporting by Nick Trevethan; Editing by Ben Tan)