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METALS-Weaker dollar pushes copper to fifth day of gains
November 23, 2017 / 11:10 AM / 23 days ago

METALS-Weaker dollar pushes copper to fifth day of gains

* LME/ShFE arb: bit.ly/2wZSAEz (Updates with closing prices)

By Peter Hobson

LONDON, Nov 23 (Reuters) - Copper prices rose for a fifth day on Thursday and most other industrial metals also gained, helped by a weaker dollar, although concerns over demand from top consumer China after a sharp fall in Chinese share prices limited rises.

Volumes were low, with Japanese markets closed for a national holiday and the United States celebrating Thanksgiving.

“Risk sentiment in markets has recovered a bit and we’ve seen the dollar fall back. But a looming concern would be China where we saw the stock market fall nearly 3 percent today. If that is giving a signal about the economy then metals will respond,” Danske Bank analyst Jens Pedersen said.

COPPER: Benchmark copper on the London Metal Exchange closed up 0.1 percent at $6,963 a tonne after touching $6,984, the highest since Nov. 7.

TECHNICALS: Copper looked ready to test resistance at $7,000 after breaking through a Fibonacci level of $6,945 a tonne, said Thomson Reuters technical analyst Wang Tao.

STOCKS: Copper inventories in LME-registered warehouses fell 7,200 tonnes to 226,275 tonnes. Stocks have fallen almost 30 percent since mid September, pointing to tighter supply and supporting prices. MCUSTX-TOTAL

ESCONDIDA: Unionized workers at Chile’s Escondida copper mine, the world’s largest, started a 24-hour strike on Thursday to protest against recent layoffs.

PERU STRIKE: Workers for the two largest unions at Southern Copper Corp in Peru started an indefinite strike, though the company said operations were unaffected.

CHINA ECONOMY: China’s economy cooled in October, with industrial output, fixed-asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution. China is the world’s biggest metals consumer and a key influence on prices.

CHINA STOCKS: Blue-chip stocks saw their worst one-day loss in nearly 18 months as investors reacted to government steps to reduce risks in the financial system.

DOLLAR: The dollar hit its weakest level in more than a month, making metals cheaper for holders of other currencies and supporting prices.

GERMANY: Exports and rising business investment drove German economic growth in the third quarter, suggesting the upswing in Europe’s largest economy would extend well into next year.

PRICES: Aluminium closed up 0.3 percent at $2,113 a tonne, nickel ended 0.7 percent higher at $11,930, zinc did not trade but was bid up 0.3 percent at $3,237, lead ended down 0.4 percent at $2,454 and tin gained 0.1 percent to $19,420.

Additional reporting by Tom Daly; Editing by Mark Potter/Alexander Smith/Andrew Heavens

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