* Sharply lower crude oil drags down copper futures
* Some question whether Fed move will feed into real economy
* Markets eye euro zone factory data this week
By Frank Tang and Maytaal Angel
NEW YORK/LONDON, Sept 17 Copper fell on Monday as tumbling crude
oil prices prompted investors to take profits after a new round of U.S. monetary
stimulus sent the industrial metal to a 4-1/2-month high in the previous
Some investors expressed caution over the prospects for prolonged growth in
industrial metals due to a 3 percent slide in Brent oil, slowing activity in
China, and worries the central bank measures will take time to feed through to
Copper, often seen as a barometer of global economic strength, gained 5
percent last week - its biggest jump in 11 weeks - after the Federal Reserve
said it would pump $40 billion into the U.S. economy every month until it sees a
sustained upturn in the weak jobs market.
On Monday, LME copper prices notched their biggest daily drop in a month as
financial markets fell across the board on profit-taking after last week's gain
boosted by hopes that the Fed stimulus will boost U.S. economic growth.
Three-month copper on the London Metal Exchange closed down 1
percent at $8,302 per tonne, after touching a high of $8,386.25 - near the
4-1/2-month top of $8,411 hit in the previous session.
LME copper rose 3.8 percent on Friday, its largest daily percentage gain
since June 29, and is up nearly 10 percent on the year.
U.S. COMEX copper futures for December delivery settled down 4.05
cents, or 1.1 percent, at $3.792 a lb.
HEDGE FUNDS BET ON COPPER
Hedge funds and other big speculators pumped more than $6 billion into U.S.
commodity markets last week, the most in three weeks, just before the Fed
announced its new round of stimulus, trade data showed on Friday.
Capping some of the metals' gains were worries about China's property
market, a top user of metals for construction but also for collateral as
developers use imports to get cheaper credit.
Factory activity will return to the fore this week with a series of
industrial-sector reports around the world, led by Thursday's euro zone PMI
In other metals, aluminium closed at $2,167 a tonne, from $2,195 on
Tin closed at $21,575 a tonne, having hit its highest since early
May at $21,750. It closed at $21,675 on Friday. Zinc, used in
galvanizing, closed at $2,089 from $2,116.
Battery material lead, untraded at the close, was bid at $2,257 from
$2,265 on Friday, while stainless steel ingredient nickel ended at
$18,220 from $17,775.
Metal prices at 1845 GMT
Metal Last Change Pct Move End 2011 Ytd Pct
COMEX Cu 374.50 -8.75 -2.28 343.60 8.99
LME Alum 2166.00 -29.00 -1.32 2020.00 7.23
LME Cu 8300.00 -80.00 -0.95 7600.00 9.21
LME Lead 2257.00 -8.00 -0.35 2035.00 10.91
LME Nickel 18215.00 440.00 +2.48 18710.00 -2.65
LME Tin 21595.00 -80.00 -0.37 19200.00 12.47
LME Zinc 2089.00 -27.00 -1.28 1845.00 13.22
SHFE Alu 15835.00 -55.00 -0.35 15845.00 -0.06
SHFE Cu* 59770.00 -590.00 -0.98 55360.00 7.97
SHFE Zin 15715.00 -130.00 -0.82 14795.00 6.22
** Benchmark month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07