* 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
By Naveen Thukral
SINGAPORE, Sept 16 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
"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,"
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)