METALS-Copper heads for weekly loss as U.S. fiscal woes weigh
* Industry event LME Week starts on Monday in London
* China returns from holiday on Tuesday Oct. 8.
* Coming Up: Euro zone producer prices at 0900 GMT
SINGAPORE, Oct 4 (Reuters) - London copper drifted on Friday, and was set for its biggest weekly loss in three weeks as worries about U.S. fiscal stability tarnished the outlook for demand, while top consumer China remained on holiday.
The shutdown of the U.S. government appeared likely to drag on for another week and possibly longer as lawmakers consumed day three of the shutdown with a stalling game and there was no end in sight until the next crisis hits Washington around Oct. 17.
And China's manufacturing growth edged up only slightly in September, official data showed this week, adding to concerns about strength of demand.
"The issues in Washington helped to soften some of the base metals, on top of the Chinese numbers," said analyst Dominic Schnider of UBS Wealth Management in Singapore.
"As China returns next week, we'll probably see a bit more support ... especially as we expect Asia's economies to gain traction into next year," he added.
Three-month copper on the London Metal Exchange was little changed at $7,190.75 a tonne by 0706 GMT, after losses from the previous session when it fell 1.2 percent.
Copper was on track to lose around 1.5 percent this week in what would be its biggest weekly decline since mid September.
The Shanghai Futures Exchange remained closed for a fourth day on Friday. It will reopen next Tuesday.
The number of Americans filing new claims for jobless benefits remained at pre-recession levels last week but growth in the massive U.S. service sector cooled in September as firms took on fewer new workers.
September nonfarm payrolls were unlikely to be released on Friday due to the shutdown.
Metals won some support from a weaker dollar. A weaker U.S. currency makes commodities cheaper for holders of other currencies.
The dollar languished near an eight-month low as the U.S. budget standoff dragged on, heightening fears it could become embroiled in the likely struggle later this month to raise the U.S. borrowing limit.
In other news, China's Minmetals has submitted a first-round bid for Glencore Xstrata's $5.9 billion Las Bambas copper mine in Peru, the managing director of the state-owned metals and mining company said.
The metals industry will gather in London next week for the LME Week, where term deals for 2014 in copper are expected to be hammered out.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Three month LME tin
(Editing by Richard Pullin and Muralikumar Anantharaman)