Early US copper grinds higher ahead of bailout vote

NEW YORK Oct 3 (Reuters) - U.S. copper futures worked higher Friday in choppy morning business as optimism for a U.S. House of Representatives approval of the proposed $700 billion bailout plan overshadowed ongoing strength in the dollar.

NOTE: For detailed report, click on [MET/L]

* Copper for December delivery HGZ8 was trading up 3.00 cents at $2.6575 a lb by 10:18 a.m. EDT (1418 GMT) on the New York Mercantile Exchange's COMEX division.

* The early range spanned $2.6845 to $2.5710, its lowest level since the middle of March 2007.

* Spot October HGV8 rose 2.25 cents at $2.6750.

* COMEX estimated futures volume at 5,966 lots by 9 a.m.

* Copper's early strength tied to gains on Wall Street, with the benchmark S&P 500 and Nasdaq temporarily adding more than 2 percent.

* Expectations that the House of Representatives will approve the financial bailout bill underpin sentiment.

* Bailout optimism offsets government data showing the U.S. economy in September shed 159,000 jobs, the biggest monthly job loss in 5-1/2 years.

* Copper supported by moderate growth in the U.S. service sector after the Institute for Supply Management said its nonmanufacturing index came in at 50.2, slightly below August's 50.6 in August. A reading above 50 signals expansion.

* Copper rise bucks stronger tone in the dollar, which was on pace for its best weekly gain versus the euro in the single currency's lifetime after the European Central Bank opened the door to rate cuts on Thursday. [USD/]

* In early New York trade, the euro fell 0.4 percent on the day to $1.3758 EUR=, having plumbed a 13-month trough of around $1.3743 on Thursday. The single currency was on track for its worst weekly percentage loss since its inception in 1999.

* Supportive fundamental news, including a work stoppage at Freeport-McMoRan's (FCX.N) Cerro Verde (CVE.LM) copper mine and new protests and strike in Peru's mining sector overshadowed by economic and demand jitters.

* London Metal Exchange copper warehouse stocks fell by 575 tonnes to 198,500 tonnes on Friday.

* COMEX copper stocks were flat at 9,921 short tons as of Thursday.

* London copper for delivery in three months MCU3 hit an early low at $5,680, its lowest since February 2007, and was last at $5,868, up from $5,850 on Thursday.

* Shanghai markets are shut for week-long National Day holidays. (Reporting by Chris Kelly; editing by Jim Marshall)