METALS-LME copper down as dollar firms after US jobs data
SHANGHAI, Oct 8 (Reuters) - London copper fell more than 1 percent on Monday, giving up last week's gains as the dollar firmed after a surprise drop in the U.S. jobless rate, while traders eyed data from top consumer China later this week for clues on demand. FUNDAMENTALS * Three-month copper on the London Metal Exchange fell 1.1 percent to $8,200.50 per tonne by 0112 GMT. * The most active January copper contract on the Shanghai Futures Exchange lost 1.1 percent to 59,120 yuan ($9,400) per tonne. Chinese traders returned to the market on Monday after a week-long national holiday. * The U.S. unemployment rate unexpectedly dropped to 7.8 percent in September and reached its lowest level since President Barack Obama took office, providing a boost to his re-election bid. * The promising jobs data led to some concerns stimulus measures put in place in world's biggest economy may not last as long as initially thought. * Persistently poor labor market conditions led the Federal Reserve in September to announce a plan to buy $40 billion worth of mortgage-backed securities each month until it sees a sustained turnaround in employment. * A disappointing rebound in U.S. housing continues to trip up the country's overall economic recovery, two influential Federal Reserve officials said on Friday, highlighting a corner of the economy that still frustrates monetary policymakers. * German Chancellor Angela Merkel will make her first visit to Greece next week since the euro zone debt crisis erupted, in a show of support for Athens after it said it would run out of money at the end of November without fresh international aid. * The European Central Bank envisions buying large volumes of sovereign bonds for a period of one to two months once its "OMT" programme is launched, but would then suspend purchases during an assessment period, senior central bank sources told Reuters. * For the top stories in metals and other news, click , or MARKET NEWS * Asian stocks edged lower on Monday and other riskier assets such as commodities fell as investors remained cautious about the outlook for the global economy and corporate earnings despite the better-than-expected U.S. jobs numbers. * The dollar hit a two-week high versus the yen on Friday after data showed the U.S. unemployment rate fell to a near four-year low in September. A firmer dollar makes commodities priced in the greenback expensive for holders of other currencies. DATA/EVENTS (GMT) 0230 China HSBC services PMI for September 0600 Germany Trade data for August 0830 Euro zone Sentix index for October 1000 Germany Industrial output for August European Central Bank and Federal Reserve hold conference in Frankfurt (to Oct. 10) Base metals prices at 0112 GMT Metal Last Change Pct Move YTD pct chg LME Cu 8200.50 -94.50 -1.14 7.90 SHFE CU FUT JAN3 59120 -650 -1.09 6.27 LME Alum 2096.00 -14.00 -0.66 3.76 SHFE AL FUT DEC2 15695 -65 -0.41 -0.92 HG COPPER DEC2 374.05 -3.75 -0.99 8.86 LME Zinc 2059.00 -16.00 -0.77 11.60 SHFE ZN FUT JAN3 15530 -250 -1.58 4.97 LME Nickel 18281.00 -19.00 -0.10 -2.29 LME Lead 2269.00 -19.00 -0.83 11.50 SHFE PB FUT 16005 -215 -1.33 4.68 LME Tin 22300.00 -100.00 -0.45 16.15 LME/Shanghai arb 1172 Shanghai and COMEX contracts show most active months ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month ($1 = 6.2849 Chinese yuan) (Reporting by Carrie Ho; Editing by Himani Sarkar)
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