* China out on Golden Week holidays from Tuesday
* China official PMI for September due on Tuesday
* U.S. government aims to avert shutdown midnight on Monday
(Updates with closing prices)
By Susan Thomas and Harpreet Bhal
LONDON, Sept 30 Copper steadied on Monday as a
soft dollar and signs of steady global growth offset investors'
concerns about the prospect of an imminent U.S. government
U.S. Republicans and Democrats are locked in an impasse over
funding and if a stop-gap spending bill is not passed before
midnight on Monday in Washington, government agencies and
programmes deemed non-essential will begin closing for the first
time in 17 years.
Concerns about the shutdown pushed world shares and the
Benchmark three-month copper on the London Metal
Exchange ended at $7,302 a tonne, from $7,300 at the close on
Prices were set to finish the quarter up more than 8
percent, but they are still down by around 8 percent this year.
"Downside momentum is dominating the global equities market
and usually commodities track the momentum in equities and
currencies," Sucden senior research analyst Myrto Sokou said.
However, recent U.S. and China's economic data was
underpinning the price of copper, which is used in construction
and power cable.
"Some of the data was in line with expectations, but it's
still quite decent data," Sokou said. "And we have seen a slow
but steady recovery in China. So I think the base metals market
is slightly more optimistic than the rest of the financial
China's factory sector grew in September after rising
foreign orders made up for a subdued home market, a private
survey showed, suggesting Asia's economic powerhouse is starting
to turn the corner, although a firm rebound remains
China's markets are closed for a week from Tuesday for
Golden Week celebrations but the government will still release
its September reading for the manufacturing sector on Tuesday. A
string of reports from Europe and the United States this week
could help set the tone for trade.
A softer dollar also helped to underpin copper. A weak
dollar makes commodities priced in it less expensive for holders
of other currencies.
Democrats who control the U.S. Senate were confident that
they would defeat Republicans' efforts to delay "Obamacare"
health reforms on Monday and send a "clean" bill to keep the
federal government operating back to the House of
"Most markets will be entering unfamiliar territory over the
next few weeks, with the first salvo possibly hitting at
midnight tonight when the U.S. government shuts down its
nonessential operations, the first time this has happened since
1995," Ed Meir, analyst at INTL FCStone wrote in a note.
In other metals, aluminium closed at $1,845 from
$1,839, zinc ended at $1,918 from $1,907, lead
closed at $2,117 from $2,100, tin ended unchanged at
$23,350 and nickel closed at $13,955 from $13,985.
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
(Additional reporting by Melanie Burton in Singapore; editing
by James Jukwey)