US copper ends down on back of weak oil, strong dlr
NEW YORK, Sept 4 (Reuters) - U.S. copper futures ended down Thursday in sympathy with a negative reversal in crude oil and a resurgent dollar -- two influential factors expected to drive the red metal's near-term direction, dealers said.
NOTE: For detailed report, click on [MET/L].
* Copper for December delivery HGZ8 shed 4.60 cents to finish the day at $3.2660 a lb on the New York Mercantile Exchange's COMEX division.
* The session range was from $3.2440 to $3.3525.
* Spot September HGU8 slipped 5.70 cents at $3.2970.
* COMEX estimated futures volume at 11,779 lots by 1 p.m. EDT (1700 GMT). Final volumes on Wednesday totaled 11,187 lots.
* Open interest fell by 1,001 lots to 76,738 contracts open as of Sept. 3.
* Copper surrendered its early short-covering gains as investors took their cues from gold's brief breakdown below $800 an ounce and further weakness in crude oil as the dollar extended its gains against the euro - analyst.
* Copper's recent price action tied inversely to the dollar - Michael K. Smith, president of T & K Futures and Options Inc. in Port St. Lucie, Florida.
* "I think the dollar probably has another basis point or two in it before this little run-up is done, and then I think the bull market will be back on ... especially for the industrial metals." - Smith.
* The dollar rallied to its highest level against the euro this year after the European Central Bank cut its growth outlook for the euro zone, stoking speculation of lower interest rates in the region. [FRX/]
* In afternoon trading in New York, the euro EUR= tumbled 0.9 percent on the day to trade at $1.4362, after falling as low as $1.4327 earlier, the lowest level since December 2007, according to Reuters data.
* A stronger dollar typically weighs on dollar-denominated metals by making them more expensive for non-U.S. investors.
* Industrial metal copper failed to find support from strong readings in the U.S. service sector after the Institute for Supply Management said its non-manufacturing index came in at 50.6 for August from July's 49.5. [ID:nN04520521]
* Copper's upside price potential reliant on upticks in consumer activity, especially from top metals consumer China - William Adams, metals analyst with BaseMetals.com.
* Arbitrage opportunities have reappeared between the London and Shanghai markets, which could spur a pick-up in Chinese imports. [ID:nSHA103754]
* Copper investors will shift their focus to Friday's weekly Shanghai inventories data, rumored to be up as much as 10,000 tonnes - analyst.
* London Metal Exchange (LME) copper warehouse stocks tacked on another 1,575 tonnes on Thursday, bringing total warehouse levels to 182,100 tonnes, their highest level since January.
* COMEX copper stocks stood even at 5,390 short tons on Wednesday.
* LME copper for delivery in three-months MCU3 settled at $7,226 a tonne, down $119 from Wednesday's closing level. (Reporting by Chris Kelly; Editing by Marguerita Choy)
