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London copper eases on caution ahead of US and China data

Kitco News

(Updates prices)

Aug 30 (Reuters) - London copper prices fell on Wednesday on caution ahead of the release of key U.S. and Chinese data, although a soft dollar and fresh measures from China to boost its ailing property sector cushioned the decline. Three-month copper on the London Metal Exchange dipped 0.3% to $8,425 per metric ton by 0807 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange rose 0.4% to 69,380 yuan ($9,514.93) a ton. The dollar index was subdued after a sharp drop in the previous session, as weak U.S. jobs data eased bets of further interest rate hikes, and amid caution ahead of a slew of key U.S. economic data due this week. A weaker dollar makes greenback-priced commodities more affordable to holders of other currencies. Metals industry players also looked to manufacturing data from China, due on Thursday and Friday, to determine the demand outlook and Chinese stimulus support. The easing of mortgage rules in China's Guangzhou city cushioned the fall in London copper prices. "This is a good chance to buy the dip. Everything should go up now that the interest rate outlook has changed," said a metals trader.

Yangshan copper premium touched its highest since December 2022 at $52 a ton on Tuesday, as the price difference between London and Shanghai created an opportunity to ship metals to China for profit. LME aluminium increased 0.1% to $2,171.50 a ton, zinc eased 0.1% to $2,436.50, tin dipped 0.2% to $25,340, nickel rose 0.1% to $20,705 and lead edged up 0.1% to $2,194. SHFE aluminium rose 0.7% to 18,775 yuan a ton, zinc climbed 1.1% to 20,975 yuan, tin jumped 1% to 213,900 yuan, nickel fell 0.2% to 165,800 yuan and lead increased 0.5% to 16,305 yuan.

For the top stories in metals and other news, click or ($1 = 7.2917 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Varun H K, Rashmi Aich and Subhranshu Sahu)

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