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CORRECTED-METALS-London copper dips on China factory activity
July 2, 2012 / 1:48 AM / 5 years ago

CORRECTED-METALS-London copper dips on China factory activity

(Corrects to clarify Japanese data was on Friday, not at the
weekend. Fixes typo in 2nd paragraph)
    SHANGHAI, July 2 (Reuters) - London copper fell back on
Monday, surrendering part of its 4-percent gain in the previous
session, after data at the weekend showed a factory slump at one
of Asia's leading exporters China had deepened in June. 
    The decline in China's purchasing managers' index (PMI)
fanned concerns over demand for industrial metals and came after
weak factory activity data in Japan on Friday. The soft data
took some shine away from last week's policy breakthrough in the
euro zone, where leaders agreed to expand the use of rescue
funds in ways that would ease market pressures on indebted
countries. 
                                
    FUNDAMENTALS
    * Three-month copper on the London Metal Exchange 
was down 0.8 percent at $7,630 per tonne by 0115 GMT, after
surging 4.1 percent on Friday - its largest single-day rise
since Nov 30.
    * The most-active October copper contract on the Shanghai
Futures Exchange edged up 0.5 percent to 55,540 yuan
($8,700) per tonne, catching up with London's gains and after
rising 1.9 percent in the prior session. 
    * A factory slump in Asia's two biggest exporters China and
Japan deepened in June as crumbling orders from abroad dragged
activity to seven-month lows, heightening worries that the
health of the global economy is deteriorating. 
 
    * The data tempered market optimism over Europe's surprise
deal last week. Under pressure to prevent a catastrophic breakup
of their single currency, euro zone leaders had agreed on Friday
to let their rescue fund inject aid directly into stricken banks
from next year and intervene on bond markets to support troubled
member states without them having to adopt extra austerity
measures. 
    * Investors are keeping an eye on the U.S. economy after
consumer spending growth there ground to a halt in May as auto
purchases flagged, while confidence ebbed to a six-month low in
June, the latest signs of trouble for the economy.
 
    * Federal Reserve officials on Friday said they were keeping
an eye out for any signs that slowing growth is raising
deflation risks but differed on how worrisome sluggish job
markets are for the modest U.S. economic recovery.
 
    * For the top stories in metals and other news, click   
, or 
                     
    MARKET NEWS
    *  Asian shares rose on Monday with sentiment brightening at
the start of the third quarter after Europe agreed to shore up
the region's banks, while investor attention is turning to the
health of the U.S. economy. 
    * The rally in the euro and high-beta currencies took a
breather on Monday as investors looked for fresh reasons to
extend a risk rally sparked by initial euphoria over perceived
progress in efforts to resolve Europe's debt crisis. 
        
    DATA/EVENTS (GMT)
0230  China   HSBC Mfg PMI Final       Jun 2012   CNPMIC=ECI  
0500  India   HSBC Markit Mfg PMI      Jun 2012    INPMI=ECI  
0743  Italy   Markit/ADACI Mfg PMI     Jun 2012   ITRPMI=ECI  
0753  Germany Markit/BME Mfg PMI       Jun 2012   DEPMIM=ECI  
0758  EZ      Markit Mfg PMI           Jun 2012    EUPMI=ECI  
1400  U.S.    ISM Manufacturing PMI    Jun         USPMI=ECI  
1400  U.S.    Construction spending mm May        USTCNS=ECI  
      Russia  HSBC Mfg PMI             Jun 2012   RUPMIM=ECI
    
    
                                                               
  Base metals prices at 0115 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7630.00    -60.00     -0.78      0.39
  SHFE CU FUT OCT2    55540       300     +0.54     -0.16
  LME Alum          1897.00    -14.00     -0.73     -6.09
  SHFE AL FUT OCT2    15485        95     +0.62     -2.24
  HG COPPER SEP2     346.25     -3.40     -0.97      0.77
  LME Zinc          1854.00    -26.00     -1.38      0.49
  SHFE ZN FUT OCT2    14720       135     +0.93     -0.51
  LME Nickel       16620.00   -110.00     -0.66    -11.17
  LME Lead          1851.00    -10.00     -0.54     -9.04
  SHFE PB FUT         14835       160     +1.09     -2.98
  LME Tin          18800.00     25.00     +0.13     -2.08
  LME/Shanghai arb    1173
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE 
 third month
 ($1 = 6.3541 Chinese yuan)

 (Reporting by Carrie Ho; Editing by Ed Davies)

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