METALS-London copper slips from near two-week high as Japan taints mood

Mon Nov 17, 2014 2:48am EST
 
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* Chinese Oct refined copper output up 13.6 percent at 732,746 T

* U.S. managed money trims net copper shorts-CFTC

* Coming Up: U.S. industrial output Oct at 1415 GMT (Adds detail; updates prices)

By Melanie Burton

SYDNEY, Nov 17 (Reuters) - London copper slipped from its highest level in a fortnight on Monday as news that Japan had surprisingly fallen into recession tainted previously buoyant sentiment following a slew of improving economic signals from the United States.

Japan's economy unexpectedly slipped into recession in the third quarter, setting the stage for Prime Minister Shinzo Abe to delay an unpopular sales tax hike and call a snap election just two years after he took office.

Slowing global growth could drag on demand for copper, which is expected to stay muted next year as the market swings into surplus for the first year in six.

"Copper looks range-bound for the rest of the year, around the ... $6,600 mark. Supply continues to be a headwind into next year," said analyst Daniel Morgan at UBS in Sydney.

Three-month copper on the London Metal Exchange climbed to its highest since Nov. 4 at $6,734 a tonne, before trading edging down by 0.3 percent to $6,686 a tonne by 0744 GMT. In the previous session it had gained 0.8 percent.   Continued...