* HSBC China Services PMI edges up in October
* US services sector activity picked up in October
* Dollar up vs euro on ECB rate cut speculation
By Susan Thomas
LONDON, Nov 5 Copper steadied on Tuesday as an
upbeat global manufacturing survey and signs the U.S. Federal
Reserve is in no rush to end its commodities-friendly stimulus
measures offset a stronger dollar.
Three-month copper on the London Metal Exchange
ended at up 0.17 percent at $7,161 a tonne from $7,149 at the
close on Monday. It remains at the lower end of a $7,000-$7,420
per tonne range that it has held since August.
Global manufacturing increased in October at its fastest
pace in more than two years, according to JPMorgan's Global
Manufacturing Purchasing Managers' Index. Growth in China's
services industry edged up, a sign that the economy has
In the U.S. meanwhile, service-sector business activity
picked up in October and firms took on workers, though new order
growth slowed for a second straight, an industry report on
Still, central bankers in the U.S. have stressed there is no
need to hurry the Fed's scale-back of its asset purchases until
the U.S. economy shows clearer signs of improvement.
"In terms of the basic fundamentals, economic data seems to
be getting better slowly and therefore every time metals come up
a bit, you get some good consumer bargain-hunting. So that will
hold the bottom end of the range," Societe Generale analyst
Robin Bhar said.
"China seems to be doing OK, but I think there is a sense
that the rebound probably is unsustainable because reform
measures are more critical in rebalancing the economy."
Chinese Premier Li Keqiang sounded a warning on easy credit
supply, which he said had topped 100 trillion yuan ($16.4
trillion) in the world's second-biggest economy and largest
consumer of commodities, including copper.
China's Communist Party plenum to set policy opens later
The country's consumption of refined copper is expected to
grow more quickly in 2014, although not fast enough to boost
imports significantly as production increases more speedily,
state-backed research firm Antaike said, feeding worries about
In the currency markets, the dollar rose against the euro,
edging back towards a seven week high set on Monday, helped by
speculation that the European Central Bank may signal easier
monetary policy or even cut interest rates this week.
A stronger U.S. currency makes it more expensive for foreign
investors to buy dollar-priced commodities.
Among other metals, lead ended down 0.14 percent at
$2,156 a tonne, having earlier hit a $2,141 a tonne, its lowest
Aluminium was last bid down 0.49 percent at $1,817 a
tonne, having earlier hit its lowest since early October at
$1,809 a tonne.
Nickel closed down 0.17 percent at $14,345 a tonne,
having earlier hit its lowest since October 21 at $14,300 a
Daily LME data showed nickel stocks rose
1,374 tonnes to total 239,958 - another new record level, though
orders to remove nickel from LME warehouses surged to nearly
85,200 tonnes, or 35.5 percent of total inventory.
"We think this reflects a similar attempt to lock up
inventory in warehouse queues as has been established in
aluminium, zinc and copper, resulting in a tighter market than
the headline LME stocks number would suggest," said VTB Capital
analyst Wiktor Bielski.
Zinc was last bid down 0.10 percent at $1,922 a
tonne, while tin bucked the slightly weak tone in most
base metals, ending up 1.25 percent at $22,995 a tonne.
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