METALS-Shanghai copper seen steady, eyeing US data, Fed

SINGAPORE, Nov 3 (Reuters) - Copper was seen steady on
Tuesday after a raft of positive manufacturing data from China,
the United States and Europe, but caution reigned ahead of more
U.S. numbers and comments by the Federal Reserve on the
economy.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange MCU3
rose 1.1 percent to close at $6,550 a tonne on Monday, paring
the previous session's 2.8 percent loss. But in late trade
prices eased off to $6,478.

* When Shanghai closed, LME copper traded around $6,540.

* The data flow turned positive on Monday after wobbling
last week. Purchasing manager data from China and the U.S
Institute of Supply Management lent support with the ISM's
manufacturing index up ar to 55.7 in October, the highest since
April 2006,

* U.S. home sales and construction activity picked up and
euro zone factory activity expanded for the first time in 17
months. [ID:nSP62642] [ID:nPEK121771] [ID:nN02435553]

* But none of that was sufficient to light a fire under
metals and traders said investors were sitting tight ahead U.S
auto sales data on Tuesday, comments from the Federal Reserve
on Wednesday and U.S. payrolls data at the end of the week.

* "It's a busy week for macro numbers and there is a worry
they might disappoint. The other worry is that the Fed might
come over more hawkish than expected and could send the dollar
skywards," a dealer in Sydney said.

* Two workers died and two were missing after an attack on
Chinese miner Zijin's controversial Rio Blanco copper project
in Peru. [ID:nN02440594]

MARKETS NEWS

* U.S. stocks rose on Monday after the round of solid
economic reports but pulled off session highs after a Federal
Reserve official's warning about banks' loan losses.

* The Dow Jones industrial average .DJI gained 76.71
points, or 0.79 percent, to end at 9,789.44. [.N] * The dollar
and the yen eased on Tuesday ahead of a central bank meeting
where interest rates are widely expected to be lifted by a
quarter of a percentage point. [USD/]

* Oil held above $78 per barrel on Tuesday after rising
nearly 1.5 percent on Monday as the dollar eased and
manufacturing data from the United States and China raised
expectations of increasing demand. [O/R]

DATA/EVENTS

* Japan Culture Day national holiday

* Reserve Bank of Australia interest rate decision (0330
GMT)

* U.S. September factory orders (1500 GMT)

* U.S. Federal Open Market 2-day interest rate meeting
starts

* U.S. October auto sales