METALS-Copper steadies; growth worries cap gains

SINGAPORE, Aug 3 (Reuters) - London copper steadied on
Friday but was set to log its biggest weekly loss in two months
after European Central Bank inaction disappointed markets and as
concerns over global growth dragged on expectations of metals
demand.

FUNDAMENTALS
* Three-month copper on the London Metal Exchange
traded at $7,349 a tonne by 0107 GMT, up 0.26 percent from the
previous session when it hit its lowest since June 22.
Copper is down more than 3 percent this week, on track for
its biggest weekly decline in two months.
* The most-traded November copper contract on the Shanghai
Futures Exchange slipped 1.24 percent to 53,970 yuan
($8,500) a tonne.
* The European Central Bank indicated on Thursday it may
again start buying government bonds to reduce crippling Spanish
and Italian borrowing costs but the conditions it set and the
dissenting voice of its key German member disappointed markets.

* Focus has now shifted to the key U.S. non-farm payrolls
data, due later in the day. The data is likely to show U.S. job
growth picked up slightly in July, not enough to change
expectations of more help from the Federal Reserve to stimulate
the faltering economy.
* Investors hoping the corporate earnings season would
signal a turning point in China's economic slowdown have been
largely disappointed, with big manufacturers joining consumer
companies to warn of flagging sales in the world's No.2 economy.

* BHP Billiton , the world's largest mining
company, has played down suggestions that it has decided to
delay its $20 billion Port Hedland harbour expansion as
softening demand and stubbornly high costs force miners to
review spending plans.
* For the top stories in metals and other news, click
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MARKETS NEWS
* Asian shares and the euro eased on Friday as the European
Central Bank, after inaction from the Federal Reserve,
disappointed markets looking for an imminent move to deal with
the euro zone debt crisis, spurring risk aversion.
* The euro nursed heavy losses on Friday, having suffered a
major setback after the European Central Bank disappointed
markets by not backing up its vows to defend the euro with
immediate action.
* U.S. stocks fell for a fourth day on Thursday after ECB
President Mario Draghi disappointed investors hoping for
immediate action to contain the euro zone debt crisis.

DATA/EVENTS (GMT)
0758 EZ Markit Services PMI Jul
0900 EZ Retail sales Jun
1230 US Non-farm payrolls Jul
1400 US ISM non-manufacturing index Jul
1930 US CFTC commitment of traders data Weekly
PRICES

Base metals prices at 0107 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7349.00 19.00 +0.26 -3.30
SHFE CU FUT NOV2 53970 -680 -1.24 -2.51
HG COPPER SEP2 331.80 2.75 +0.84 -3.43
LME Alum 1845.00 1.00 +0.05 -8.66
SHFE AL FUT NOV2 15205 -110 -0.72 -4.04
LME Zinc 1816.00 4.00 +0.22 -1.57
SHFE ZN FUT NOV2 14530 -40 -0.27 -1.79
LME Nickel 15380.00 130.00 +0.85 -17.80
LME Lead 1860.00 6.00 +0.32 -8.60
SHFE PB FUT 14805.00 -100.00 -0.67 -3.14
LME Tin 17430.00 0.00 +0.00 -9.22
LME/Shanghai arb^ 596

Shanghai and COMEX contracts show most active months
($1 = 6.3674 Chinese yuan)

(Reporting by Melanie Burton; Editing by Himani Sarkar)