METALS-Copper eyes small weekly loss as stronger dollar drags

Thu Mar 5, 2015 8:58pm EST
 
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MELBOURNE, March 6 (Reuters) - London copper was set for a small loss this week as a stronger dollar broadly dented appetite for commodities, with traders saying it was still too soon after China's Lunar New Year break to accurately gauge demand in the world's top user of metals.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange had eased 0.4 percent to $5,810 a tonne by 0121 GMT, after closing little changed in the previous session. Prices were facing a weekly loss of around 1.4 percent, their biggest such decline in six weeks.

* The most-traded May copper contract on the Shanghai Futures Exchange slipped by 0.2 percent to 42,340 yuan ($6,757) a tonne.

* LME lead sank by around 1 percent, eroding gains of around 2.5 percent from the previous session, but still looked set to notch its biggest weekly gain since May 2013, at more than 4 percent.

* China plans to run its biggest budget deficit in 2015 since the global financial crisis, stepping up spending as Premier Li Keqiang signalled that the lowest rate of growth in a quarter of a century is the "new normal" for the world's No.2 economy.

* The number of Americans filing new claims for unemployment aid last week rose to its highest level since May, but economists dismissed the increase as weather-related and said the jobs market remained solid.

* European Central Bank President Mario Draghi outlined its quantitative easing programme at a press conference following a scheduled policy meeting. He left the door open for more bond purchases beyond September 2016.   Continued...