METALS-LME copper edges up, investors look for stimulus moves

SHANGHAI, Aug 10 (Reuters) - London copper edged higher on
Friday in thin trade as investors held on to cautious optimism
while waiting for concrete signs of stimulus policies they have
been expecting from major economies.
Base metals markets were especially yearning for decisive
intervention measures by China, the euro zone and the United
States to spur the global economy and improve the outlook for
metals demand.

FUNDAMENTALS
* Three-month copper on the London Metal Exchange
had inched up 0.1 percent to $7,541 per tonne by 0111 GMT,
snapping two sessions of losses and on track to post a 1.3
percent gain on the week.
* The most active November copper contract on the Shanghai
Futures Exchange fell 0.2 percent to 55,030 yuan
($8,700) per tonnecatching up with London's previous losses but
on track to log a 2.1 percent rise this week.
* China's factory output growth slowed unexpectedly in July
to the weakest in more than three years, while annual consumer
inflation fell to a 30-month low last month, raising hopes that
Beijing will introduce more stimulus measures to keep growth on
track to meet a 7.5 percent annual target.
* The number of Americans filing new claims for jobless
benefits unexpectedly fell last week, offering hope that some of
last month's improvement in job growth could be sustained and
give the U.S. economy a lift.
* The European Central Bank is determined to bring down the
excessive borrowing costs hurting Spain and Italy and should be
ready to intervene decisively in bond markets very soon, ECB
governing council member Christian Noyer said on Thursday.

* Any intervention would be welcome as fortunes of the euro
zone's most vulnerable economies have darkened markedly since
June, according to a Reuters poll of economists that showed
Spain will apply for an EU bailout within months.

* The Bank of Japan kept monetary policy steady on Thursday
but cut its assessment on exports and output as companies feel
the pinch from slowing global growth, signalling its readiness
to expand stimulus again in the world's third-largest economy if
risks to the outlook grow.

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MARKET NEWS
* Asian shares paused on Friday as investors took stock of a
four-day rally driven by optimism, yet to be borne out by
action, that the authorities will soon take the steps needed to
ease concerns over the euro zone's debt crisis and weak growth.

* The euro steadied in Asia on Friday, as hopes for progress
in Europe's debt crisis gained the upper hand over worries about
slowing euro zone growth.

DATA/EVENTS (GMT)
China Exports
China Imports
China Trade balance
0430 Japan Industrial output revised
0645 France Industrial output
1230 U.S. Import/export prices for July
1400 U.S. Philadelphia Fed quarterly survey
1800 U.S. Federal budget for July

Base metals prices at 0111 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7541.00 7.00 +0.09 -0.78
SHFE CU FUT NOV2 55030 -130 -0.24 -1.08
LME Alum 1899.75 -0.25 -0.01 -5.95
SHFE AL FUT NOV2 15450 -20 -0.13 -2.46
HG COPPER SEP2 342.10 -0.40 -0.12 -0.44
LME Zinc 1858.50 -1.50 -0.08 0.73
SHFE ZN FUT NOV2 14770 -25 -0.17 -0.17
LME Nickel 15500.00 0.00 +0.00 -17.16
LME Lead 1915.00 -6.00 -0.31 -5.90
SHFE PB FUT 0 -15080 -100.00 -100.00
LME Tin 18075.00 175.00 +0.98 -5.86
LME/Shanghai arb 1074

Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month

($1 = 6.3590 Chinese yuan)

(Reporting by Carrie Ho; Editing by Chris Lewis)