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METALS-London copper climbs as Yellen boosts risk appetite

Tuesday, 11 Feb 2014 | 8:40 PM ET

SYDNEY, Feb 12 (Reuters) - London copper climbed on Wednesday as appetite for risk picked up following comments by new Federal Reserve Chair Janet Yellen that painted an improving picture for the world's top economy.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange had risen 0.54 percent to $7,114 a tonne by 0118 GMT, reversing losses from the previous session.

* Copper prices have recouped more than 1 percent since falling to two-month lows of $7,016 on Feb. 4, but are still down 3.3 percent this year.

* The most-traded April copper contract on the Shanghai Futures Exchange was flat at 50,580 yuan ($8,300) a tonne.

* Fresh from taking the helm at the Fed, Yellen made it clear on Tuesday she would not make any abrupt changes to U.S. monetary policy, saying the central bank was on track to keep reducing its stimulus even though the labour market recovery was far from complete.

* Regional markets face a potential pitfall later Wednesday when China releases trade figures for January. Any weakness would stoke concerns about a slowdown and the risks would seem to be sizable given January last year was a very strong month for export growth, making for a tough comparison.

* Aggressive cost cutting, volume growth and stable commodity prices will drive a rise in half-year profits for the world's biggest miners, paving the way for healthy dividend hikes now and anticipated capital returns in 2015

* Glencore Xstrata's Pacorini has delisted 14 metals warehouses in the Dutch port of Vlissingen, the London Metal Exchange (LME) said on Tuesday, as storage firms get ready for big changes in the business.

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MARKETS NEWS

* Asian shares rallied for a fourth straight session on Wednesday as risk appetites were whetted by Yellen, which diminished the need for safe havens such as the yen and bonds.

DATA (GMT)

0200 China trade data

0745 France current account

1000 Euro zone Industrial production

1900 U.S. Federal budget

PRICES

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

($1 = 6.0606 Chinese yuan)

(Reporting by Melanie Burton; Editing by Joseph Radford)