METALS-Copper firms on technical buying; gains seen limited
SINGAPORE, July 3 (Reuters) - London copper rose on Wednesday, underpinned by short covering and bottlenecks in supply, although sluggish global growth eroded demand prospects and signalled any rally may be hard to sustain.
* Three-month copper on the London Metal Exchange rose 0.80 percent to $6,965.50 a tonne by 0111 GMT, reversing losses from the previous session.
* Copper prices racked up losses of more than 7 percent in June and are wallowing down more than 12 percent year to date.
* The most-traded October copper contract on the Shanghai Futures Exchange rose 0.68 percent to 50,280 yuan ($8,200) a tonne.
* Cash copper has jumped in two days from a discount to its highest premium in nearly a year over three-month futures as mine shutdowns have combined with limited delivery from exchange-registered warehouses to choke immediate supply.
* China's copper importers are being forced by bottlenecks at London Metal Exchange's warehousing system to queue up for deliveries of metal they have already bought, resulting in spot copper import premiums rising by a third since mid-June.
* U.S. new motor vehicle sales in June were poised to record their strongest month in more than 5-1/2 years and factories posted a second straight month of gains in new orders in May, indicating some pick-up in economic activity.
* The European Central Bank, eying tentative signs of euro zone economic recovery, is expected to eschew any major decisions on Thursday and keep its easy-money policy in place
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* The U.S. dollar hovered at one-month highs against a basket of major currencies on Wednesday, while Asia shares drooped after a batch of U.S. data reinforced views that the days of easy money from the Federal Reserve are numbered.
DATA/EVENTS (GMT) 0145 China HSBC Services PMI 0753 Germany Markit Services PMI 0758 Euro zone Markit Services PMI 0900 Euro zone Retail sales 1215 U.S. ADP employment report 1230 U.S. Weekly jobless claims 1230 U.S. International trade 1400 U.S. ISM Non-manufacturing PMI 1430 U.S. EIA weekly crude stocks
Base metals prices at 0111 GMT
Metal Last Change Pct Move YTD pct chg LME Cu 6965.50 55.50 +0.80 -12.17 SHFE CU FUT OCT3 50280 340 +0.68 -13.21 HG COPPER SEP3 3.16 0.02 +0.51 -13.51 LME Alum 1829.25 -3.25 -0.18 -11.76 SHFE AL FUT OCT3 14380 25 +0.17 -8.23 LME Zinc 1889.75 -2.25 -0.12 -9.15 SHFE ZN FUT OCT3 14635 40 +0.27 -8.84 LME Nickel 14019.00 -21.00 -0.15 -17.83 LME Lead 2087.75 8.25 +0.40 -10.40 SHFE PB FUT 0.00 -13955.00 -100.00 -100.00 LME Tin 20144.00 -81.00 -0.40 -13.91 LME/Shanghai arb^ -537
Shanghai and COMEX contracts show most active months ($1 = 6.1330 Chinese yuan)
(Reporting by Melanie Burton; Editing by Richard Pullin)