METALS-Copper rises from 5-week low as Syria fears ease, dollar drops
* Copper rises 0.4 pct, up from Aug 8 lows hit on Friday
* Russia-U.S. deal on Syria lifts risk appetite
* Summers withdraws from Fed chair consideration (Updates prices)
By Naveen Thukral
SINGAPORE, Sept 16 (Reuters) - London copper edged higher on Monday after sliding to a 5-week low in the previous session, as a U.S.-Russia deal on Syria boosted risk appetite and the dollar slid after Lawrence Summers withdrew as a candidate to head the U.S. Federal Reserve.
Copper is up more than 7 percent from three-year lows plumbed in late June and other industrial metal prices too have been underpinned by improving sentiment on global growth. Recent data has boosted optimism about demand in China, which accounts for 40 percent of global copper consumption.
But the copper market has failed to gain traction above $7,420 a tonne, the top-end of a recent band hit in mid-August.
Three-month copper on the London Metal Exchange rose 0.4 percent to $7,066.75 a tonne by 0700 GMT. It had dropped to a low of $7,024 a tonne on Friday, its weakest since Aug. 8.
The most-traded December copper contract on the Shanghai Futures Exchange closed unchanged at 51,180 yuan a tonne.
"We are seeing bit more stability in Europe, things in the U.S. have continued to generally improve and we have seen true stability emerge in China," said Andrew Shaw, head of base metals research at Credit Suisse in Singapore.
"But I don't think aggregate demand is sufficiently strong globally to push the market higher. We have seen supply growth in a number of industrial commodities continue to edge ahead," Shaw added.
Summers, a former top aide to President Barack Obama and Treasury secretary under President Bill Clinton, withdrew from consideration to succeed Fed Chairman Ben Bernanke, after liberal pressure soured his confirmation prospects.
Investors wagered that Fed policy would stay easier for longer under the other main candidate, Janet Yellen. A lower dollar typically helps boost demand for dollar-denominated assets by making them cheaper for holders of other currencies.
Sentiment has also been aided by Saturday's deal between Russia and the United States to demand that Syrian President Bashar al-Assad account for his chemical arsenal within a week and let international inspectors eliminate all the weapons by the middle of next year.
Markets are awaiting the outlook from the U.S. central bank on its commodities-friendly $85 billion monthly bond purchases. The Fed holds a two-day policy meeting from Tuesday.
Lead was little changed on Monday after declining 2.3 percent on Friday to a six-week low, weighed down by inventories rising by nearly 30 percent.
Daily inventories <0#MPBSTX-LOC> of the metal shot up by 49,475 tonnes at LME-registered warehouses in the Dutch port of Vlissingen. It is the biggest daily rise in lead stocks since 1970, according to LME data.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Three month LME tin (Editing by Muralikumar Anantharaman)
- Obama and Castro shake hands, Zuma humiliated at Mandela memorial |
- Google bus blocked in San Francisco gentrification protest
- Reporter can keep sources secret in Colorado theater shooting: court
- Couple, four children missing in Nevada found safe in canyon
- Regulators seek to curb Wall St. trades with Volcker rule |