Fri Jul 20, 2012 1:14am EDT
* Investors bet on more China stimulus over the weekend -trade * Beijing warns against lifting property purchase curbs * Gloomy U.S. factory activity, jobs data weigh * Coming Up: U.S. CFTC commitment of traders data weekly; 1930 GMT (Updates prices; adds quotes, details) By Carrie Ho SHANGHAI, July 20 (Reuters) - London copper prices edged up on Friday, holding near a two-week high hit in the previous session on hopes of more steps by top consumer China to boost its economy after Beijing's comments on jobs creation. But gains are likely to be capped by China's warning against relaxing curbs on the property sector, favoured by many investors as a quick way to boost domestic consumption, and by weak U.S. data underscoring a fragile U.S. economic recovery. Three-month copper on the London Metal Exchange edged up 0.1 percent to $7,740 per tonne by 0421 GMT after touching a high of $7,813 per tonne on Thursday, its highest since July 3. It is on track to post a rise of 0.5 percent on the week in its second such increase in a row. Many investors are betting on new Chinese stimulus measures this weekend after Premier Wen Jiabao said Beijing needed to step up efforts to create jobs. "We can't rule out the possibility of Beijing rolling out more monetary easing or investment policies soon, which will push base metals prices higher," said consultancy CRU Group analyst Wan Ling. The most active November copper contract on the Shanghai Futures Exchange fell 0.2 percent to 56,130 yuan ($8,800) per tonne, pushed down by Shanghai equities. Shanghai copper is on track for a 1.2 percent weekly gain. "With Shanghai equities down, some Chinese investors may have cut positions in metals to cover losses. This is especially since there isn't any really positive news to sustain prices," a Shanghai-based trader said. Further weighing on sentiment was a firm reminder by Beijing to local governments to keep clamping down on property speculation, underlining official concerns about renewed inflationary pressures even as the broader economy slows. "The government's latest comments on property purchase curbs dashed the hopes of those who were looking for a reversal on current restrictions, which will likely boost metals demand from construction and household appliances," said CIFCO Futures analyst Zhou Jie. Worries over a slowdown in the U.S. economy are also expected to cap session gains, after data showed factory activity in the Mid-Atlantic region contracted in July for a third straight month and that new claims for jobless aid surged last week. This is despite a spot of good news from the euro zone, where German Chancellor Angela Merkel easily won a parliamentary vote on a euro zone rescue package for Spanish banks on Thursday, and from Japan, where a poll showed big manufacturers' outlook improving slightly in July. In industry news, the U.S. Securities and Exchange Commission extended the consultation period for its deliberations on JP Morgan Chase & Co's controversial plan to launch an exchanged-traded fund (ETF) physically backed by copper, after copper users voiced their opposition to it. U.S. miner Freeport-McMoRan Copper & Gold Inc said its Grasberg mine in Indonesia was returning to normal production after a crippling strike last year. The company also said it planned to increase copper production by 25 percent over the next three years by developing brownfields -- projects near existing mines. Around 500 contract workers at three of world No. 1 copper producer Codelco's massive northern deposits will strike on Friday, the national federation of contract workers said, but Codelco said the unrest would not affect output. Base metals prices at 0421 GMT Metal Last Change Pct Move YTD pct chg LME Cu 7740.00 10.00 +0.13 1.84 SHFE CU FUT NOV2 56130 -100 -0.18 0.90 LME Alum 1932.00 -12.00 -0.62 -4.36 SHFE AL FUT OCT2 15610 -05 -0.03 -1.45 HG COPPER SEP2 351.55 -1.90 -0.54 2.31 LME Zinc 1868.00 -18.50 -0.98 1.25 SHFE ZN FUT OCT2 14730 -100 -0.67 -0.44 LME Nickel 16061.00 6.00 +0.04 -14.16 LME Lead 1906.25 -23.25 -1.20 -6.33 SHFE PB FUT 14960 -60 -0.40 -2.16 LME Tin 19050.00 -45.00 -0.24 -0.78 LME/Shanghai arb 1576 Shanghai and COMEX contracts show most active months ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month ($1=6.3734 Chinese yuan) (Editing by Clarence Fernandez)
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