* U.S. wage and inflation data lifts dollar
* Market awaiting minutes of latest Fed policy meeting
* LME/ShFE arb: bit.ly/2wZSAEz (Updates prices)
By Maytaal Angel
LONDON, Feb 21 (Reuters) - Copper steadied on Wednesday after hitting a one-week low earlier in the session as investors moved into the safety of the dollar before the release of the minutes from the U.S. Federal Reserve’s most recent policy meeting.
The dollar hit a one-week high versus a currency basket thanks in part to a bouyant two-year Treasury note yield, which hit a nine-year high as traders awaited the release of the Fed minutes.
The last readings of U.S. wages and inflation came in higher than expected. Investors are now waiting to see if the Fed policy minutes due later on Wednesday will signal a quicker pace of interest rate increases than previously expected.
“There are still good indications that inflation might edge up and force the Fed to hike more than three times (this year),” said Peter Fertig, a consultant at Quantitative Commodity Research.
“All in all, the fundamentals still look supportive for copper. The economic situation in China is not that bad, but there could be turbulence coming from the slide out of risky assets into safe havens.”
* COPPER PRICE: Benchmark copper on the London Metal Exchange ended up 0.4 percent at $7,119 a tonne, having touched a one-week trough of $7,034.50.
* CHINA HOLIDAY: Chinese markets are set to reopen on Thursday after a week-long Spring Festival holiday.
* COPPER STOCKS: On-warrant copper stocks MCU-STOCKS in LME warehouses were down 1,075 tonnes at 289,975 tonnes. So far this year, they have risen by 84 percent.
* TENDER: Southern Copper Corp won a tender to develop Peru’s estimated Michiquillay copper mine in an auction that attracted only two bidders, the government’s Proinversion investment agency said.
* CHINA STEEL: China’s steel producers are eager to unleash their mill capacity when this winter’s output curbs end next month, hoping for a repeat of last year’s record profits based on high margins and reduced competition after the closure of outdated plants.
* GLENCORE RESULTS: Glencore Chief Executive Ivan Glasenberg on Wednesday hailed the group’s full-year results as its “strongest on record”, bolstered by reduced costs and stronger commodity markets.
* ALUMINIUM STOCKS: On-warrant stocks of available aluminium inventories in LME warehouses rose by 12,325 tonnes to 1,159,325 tonnes, having increased by 39 percent over the past two weeks. MAL-STOCKS
* OTHER METALS: Aluminium ended up 0.7 percent at $2,201 a tonne, zinc closed down 0.3 percent at $3,541 and lead ended down 1.7 percent at $2,554. Tin closed up 0.2 percent at $21,625 while nickel closed up 1.7 percent at $13,845.
Additional reporting by Manolo Serapio Jr.; Editing by David Goodman and Edmund Blair