METALS-London copper rallies, China outlook supports
MELBOURNE, Jan 11 (Reuters) - London copper rallied on Friday to near a one-week high hit the session before after China's export demand improved in December, while dollar weakness also helped after the European Central Bank gave no indication of further rate cuts.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange had risen 0.55 percent to $8,155 a tonne by 0109 GMT, extending gains from the previous session when it hit a one-week peak at $8,165 a tonne.
* Copper prices were edging back to 2-1/2 month highs of $8,256.50 hit Jan. 3, advancing almost 3 percent so far this year.
* The most-traded April copper contract on the Shanghai Futures Exchange gained 0.17 percent to 58,880 yuan ($9,500) a tonne, earlier reaching its highest since Oct. 19 at 58,980 a tonne, playing catch up with overnight gains in copper.
* China's export growth rebounded surprisingly sharply to a seven-month high in December, a strong finish to the year after seven straight quarters of slowdown, but subdued global demand means the spike may not herald an enduring recovery.
* China's annual consumer inflation sped to a seven-month high of 2.5 percent in December from November's 2 percent, data showed on Friday, overshooting market expectations and dampening the chance for further policy easing as the economy recovers.
* The euro zone economy will recover later in 2013 and there are already some signs of stabilisation, the European Central Bank said on Thursday after it unanimously held interest rates at a record low.
* Japan's cabinet approved on Friday an economic stimulus package in the biggest spending boost since the financial crisis as Prime Minister Shinzo Abe pursues an ambitious agenda to spur growth and end nagging deflation.
* U.S. copper users criticized U.S. regulators as "arbitrary and capricious" and requested they reverse their ruling in favour of JPMorgan Chase & Co's controversial plan for a copper exchange-traded fund.
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MARKETS NEWS
* Asian shares rose on Friday amid an improving outlook for global economies and reduced anxiety over the euro zone's debt problems, while the yen slid on renewed expectations for aggressive monetary easing in Japan.
* The yen slid to 2-1/2 year lows after Japanese Prime Minister Shinzo Abe said the Bank of Japan should consider maximising employment as a policy goal on top of its current price stability mandate.
DATA/EVENTS (GMT) 11 January 0130 - China PPI year on year for Dec 0130 - China CPI year on year for Dec 0500 - Japan Economy Watchers Survey For December 0800 - Spain Industrial Output For November 0930 - UK Industrial Output For November 1330 - U.S. International Trade For November 1330 - U.S. Import/Export Prices For December PRICES
Base metals prices at 0109 GMT
Metal Last Change Pct Move YTD pct chg LME Cu 8155.00 45.00 +0.55 2.85 SHFE CU FUT APR3 58880 100 +0.17 2.08 HG COPPER MAR3 371.30 0.40 +0.11 1.66 LME Alum 2125.00 11.00 +0.52 2.61 SHFE AL FUT APR3 15390 30 +0.20 0.29 LME Zinc 2054.00 16.00 +0.79 -0.46 SHFE ZN FUT APR3 15575 30 +0.19 0.19 LME Nickel 17560.00 160.00 +0.92 2.36 LME Lead 2346.00 13.00 +0.56 0.26 SHFE PB FUT 0.00 0.00 0.00 0.00 LME Tin 24655.00 0.00 +0.00 5.36 LME/Shanghai arb^ 726
Shanghai and COMEX contracts show most active months ($1 = 6.2244 Chinese yuan)
(Reporting by Melanie Burton; Editing by Joseph Radford)