METALS-London copper edges up; U.S. stimulus worries cap gains
* China trade data due July 10
* Investors add to net short position - CFTC
* Coming Up; German industrial output at 1000 GMT
(Adds comments, detail, updates prices) SINGAPORE, July 8 (Reuters) - London copper edged up on Monday on technical buying after a steep fall in the previous session, but expectations that U.S. economic stimulus will be scaled back as early as September after a solid labour report kept a lid on gains. Three-month copper on the London Metal Exchange rose 0.3 percent to $6,798 a tonne by 0256 GMT on short covering, paring losses from the previous session when it fell by more than two percent. Prices remain mired not far off a 3-year low of $6,602 a tonne touched June 25. The most-traded November copper contract on the Shanghai Futures Exchange fell 1.27 percent to 49,050 yuan ($8,000) a tonne. A better-than-expected U.S. jobs report on Friday sparked a fall in metals prices as investors would back expectations for demand, which fed into broader worries about slowing economic growth in China, the world's top copper consumer, said Melbourne-based ANZ analyst Natalie Rampono. "Overall the market mood is still pretty bearish on China, so markets will probably be looking towards the import data on Wednesday to see if there has been an improvement," she said.
"The market is still very cautious at this stage. I think there's potential for relief rallies but these will short lived," she added. U.S. job growth was stronger than expected in June and the payroll gains for the prior two months were revised higher, cementing expectations the Federal Reserve will start winding down its stimulus program as early as September. The U.S. dollar hit a fresh three-year high against a basket of major currencies in Asia on Monday, adding pressure to metals. Commodities tend to fall as the dollar climbs because a stronger dollar makes commodities more expensive for holders of other currencies. China's resolve to revamp its economy to win long-term gains will be tested this month when a slew of data is expected to show growth is grinding towards a 23-year low, with no recovery in sight. China trade data is due on July 10, while GDP data is due July 15. ANZ expects copper imports to improve month-on-month but to show year-on-year weakness. Reflecting a bearish outlook by investors for commodities, hedge funds and money managers boosted a net short position in copper futures and options in the week to June 25, a report by the Commodity Futures Trading Commission (CFTC) showed on Friday.
PRICES Base metals prices at 0256 GMT
Metal Last Change Pct Move YTD pct chg LME Cu 6798.50 18.50 +0.27 -14.26 SHFE CU FUT NOV3 49050 -630 -1.27 -14.96 HG COPPER SEP3 3.08 0.02 +0.49 -99.16 LME Alum 1775.00 7.00 +0.40 -14.29 SHFE AL FUT OCT3 14230 -65 -0.45 -7.27 LME Zinc 1845.00 105.00 +6.03 -10.59 SHFE ZN FUT OCT3 14440 -1105 -7.11 -7.11 LME Nickel 13340.00 40.00 +0.30 -22.24 LME Lead 2028.00 -2.00 -0.10 -13.33 SHFE PB FUT 13835.00 -50.00 -0.36 -9.28 LME Tin 19090.00 240.00 +1.27 -18.42 LME/Shanghai arb^ ---
Shanghai and COMEX contracts show most active months ($1 = 6.1326 Chinese yuan)
(Reporting by Melanie Burton; Editing by Richard Pullin)