Copper firms as upbeat Chinese factory data boosts market
Recasts with official prices
By Eric Onstad
LONDON, Oct 31 (Reuters) -Copper prices ticked higher on Thursday as factory data from China offset worries about further economic stimulus in the top metals consumer while investors anxiously await the outcome of next week's U.S. presidential election.
Three-month copper CMCU3 on the London Metal Exchange (LME) rose 0.2% to $9,556 a metric ton in official open-outcry trading.
Data showed that manufacturing activity in China expanded in October for the first time in six months, indicating stimulus measures are helping the battered economy to turn a corner.
The Caixin manufacturing survey, which mostly covers smaller, export-oriented companies in China, is due on Friday.
"It was a good increase and if the Caixin number makes a turnaround, I think that will be a very good sign that will help metal markets," said WisdomTree commodity strategist Nitesh Shah.
The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 closed 0.2% down at 76,540 yuan ($10,748.79) a ton.
On a monthly basis, LME copper has lost 3% and SHFE copper 2.9%.
The market is in a holding pattern, awaiting concrete information about fiscal stimulus, Shah added.
Copper prices surged in late September to more than $10,000 a ton after a U.S. interest rate cut and the announcement of a series of Chinese economic support programmes.
Prices retreated, however, after the scale of the stimulus measures and a lack of detail disappointed market participants.
"We may not know more details of the stimulus until after the U.S. election because China may be keeping back some firepower in case trade tariffs are more aggressive under the new administration," Shah said.
China's top legislative body meets over Nov. 4-8 to consider potential measures to boost its economy.
Among other metals, LME aluminium CMAL3 gained 1% to $2,642 a ton, tin CMSN3 advanced 1.3% to $31,350, zinc CMZN3 was up 0.3% at $3,095, lead CMPB3 rose 0.7% to $2,017 and nickel CMNI3 lost 0.2% to $15,780.
($1 = 7.1208 yuan)
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Reporting by Eric Onstad
Additional reporting by Mai Nguyen in Hanoi
Editing by David Goodman
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