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METALS-London copper marks time as strike threat underpins

MELBOURNE, July 5 (Reuters) - London copper was treading water on Wednesday amid heightened risk aversion in Asia following a North Korean missile test, while strike threats at a South American copper mine lent support to prices.

FUNDAMENTALS

* London Metal Exchange copper was little changed at $5,885 a tonne by 0141 GMT, having logged modest losses of 0.6 percent in the previous session. Prices, which failed near resistance at $6,000 a tonne are now easing to support at the 100-day moving average of $5,774.

* Shanghai Futures Exchange copper edged down by 0.6 percent to 47,150 yuan ($6,935) a tonne. U.S. markets were closed for a holiday.

* North Korea said on Wednesday it had conducted a test of a newly developed intercontinental ballistic missile that can carry a large and heavy nuclear warhead.

* Chilean mining company Antofagasta Minerals, one of the biggest global copper producers, on Tuesday was facing potential strikes from workers at its Zaldivar mine and by supervisors at Centinela as contract talks continue.

* China's services sector grew at a slower pace in June as new orders slumped, signaling renewed pressure on businesses after a pickup in May and pointing to a softening outlook for the economy, a private business survey showed on Wednesday.

* A group of former traders from commodity house Glencore are set to launch an online platform on Wednesday that allows mining companies and smelters to cut out the middlemen and save cash on deals for concentrates.

* Indonesia has issued recommendations to two more companies to allow them to export mineral ores.

* Tanzania put more pressure on foreign mining companies on Tuesday by amending mining and tax laws to make it mandatory for the state to own at least 16 percent of mining projects, while also raising export royalties.

* China's central bank said on Tuesday the shadow banking sector lacks sufficient regulation and the bank would give more prominence to financial risk controls.

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MARKETS NEWS

* Asian share markets got off to a subdued start on Wednesday as simmering tensions on the Korean peninsula supported safe-harbors including the yen and gold.

DATA/EVENTS 0750 France Markit services PMI Jun 0755 Germany Markit services PMI Jun 0800 Euro zone Markit services PMI final Jun 0900 Euro zone Retail sales May 1345 U.S. ISM-New York index Jun 1400 U.S. Factory orders May 1800 Federal Reserve to release minutes from June meeting

PRICES

BASE METALS PRICES 0136 GMT Three month LME copper 5886.5 Most active ShFE copper 47160 Three month LME aluminum 1924.5 Most active ShFE aluminum 14115 Three month LME zinc 2782 Most active ShFE zinc 23055 Three month LME lead 2278.5 Most active ShFE lead 17675 Three month LME nickel 9155 Most active ShFE nickel 75260 Three month LME tin 0 Most active ShFE tin 144820

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 459.33 LME/SHFE ALUMINIUM LMESHFALc3 -1056.

5

LME/SHFE ZINC LMESHFZNc3 264.45 LME/SHFE LEAD LMESHFPBc3 -1337.

31

LME/SHFE NICKEL LMESHFNIc3 2534.0

3

($1 = 6.7990 Chinese yuan renminbi)

(Reporting by Melanie Burton; Editing by Richard Pullin)