July 16, 2012 / 2:03 AM / 5 years ago

METALS-LME copper comes off 1-wk top; China monetary policy eyed

SHANGHAI, July 16 (Reuters) - London copper edged down on
Monday after surging to a one-week high in the prior session,
although signals top consumer China will step up efforts to
stabilise its economy is expected to put a floor under prices. 
                                                
    FUNDAMENTALS
    * Three-month copper on the London Metal Exchange 
inched down 0.3 percent to $7,674.50 per tonne by 0115 GMT,
after rising 1.9 percent in the previous session. Prices hit a
one-week top at $7,730 on Friday.
    * The most-active October copper contract on the Shanghai
Futures Exchange rose 0.5 percent to 56,020 yuan
($8,800) per tonne, catching up with London's previous gains.
    * China's Premier Wen Jiabao on Sunday said efforts to
stabilise the economy are working and the government will step
up efforts in the second half of the year to increase policy
effectiveness and foresight, raising hopes of more aggressive
investment spending by Beijing.  
    * This was after Friday's China GDP data showing an annual
growth of 7.6 percent in the second quarter, in line with market
estimates. But China's growth rate had slowed for a sixth
successive quarter to its slackest pace in more than three
years, highlighting the need for more policy vigilance from
Beijing. 
    * Hedge funds and money managers increased their net short
position in copper by 3,064 to 4,813 contracts in the United
States in the week to July 10. 
    * U.S. consumer sentiment cooled again in early July to its
lowest level in seven months as Americans took a dim view of
their finances and job prospects, a survey released on Friday
showed.  
    * Italian banks came to the rescue on Friday after the
country suffered a ratings downgrade, but while Rome cut its
three-year borrowing costs at auction, a rise in 10-year bond
yields highlighted concern it may fall victim to Europe's debt
crisis.        
    * For the top stories in metals and other news, click
, or 
                     
    MARKET NEWS
    * Asian shares extended their rally on Monday as fears of an
economic hard landing in China subsided, with last week's softer
growth data within expectations and Premier Wen Jiabao raising
the prospects of more policy stimulus if needed. 
    * The euro and high-beta currencies like the Australian
dollar started trading on Monday with a spring in their step,
following a rally late last week in part on the back of
diminishing worries about China's economic health. 
        
    DATA/EVENTS (GMT)
0900  EZ   Inflation, final yy      Jun     
0900  EZ   Eurostat trade nsa, EUR  May     
1230  U.S. Retail sales mm          Jun      
1400  U.S. Business inventories mm  May    
                                                              
  Base metals prices at 0115 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7674.50    -25.50     -0.33      0.98
  SHFE CU FUT OCT2    56020       250     +0.45      0.70
  LME Alum          1908.00     -2.00     -0.10     -5.54
  SHFE AL FUT OCT2    15600        80     +0.52     -1.52
  HG COPPER SEP2     348.20     -2.20     -0.63      1.34
  LME Zinc          1868.50     -5.50     -0.29      1.27
  SHFE ZN FUT OCT2    14850        65     +0.44      0.37
  LME Nickel       16135.00    -65.00     -0.40    -13.76
  LME Lead          1880.00      0.00     +0.00     -7.62
  SHFE PB FUT         14980        20     +0.13     -2.03
  LME Tin          18780.00      0.00     +0.00     -2.19
  LME/Shanghai arb    1254
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE 
 third month
 ($1 = 6.3789 Chinese yuan)

 (Reporting by Carrie Ho; Editing by Himani Sarkar)

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