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METALS-LME copper set for 5th quarterly gain, buoyed by China demand hopes

SINGAPORE, Sept 29 (Reuters) - London copper rose for a third session on Friday and was set to notch up its fifth consecutive quarterly gain, buoyed by expectations of strong demand in top industrial metals consumer China.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange had climbed 0.3 percent to $6,540 a tonne by 0125 GMT, extending gains from the previous session. The market has climbed more than 10 percent since the beginning of July.

* The most-traded copper contract on the Shanghai Futures Exchange advanced 1.8 percent to 51,310 yuan ($7,705.25) a tonne.

* Early readings on Chinese manufacturing are due on Saturday ahead of a week-long holiday.

* China's factories likely cranked up activity for the 14th straight month in September as the country's year-long building boom and higher prices generate hearty profits, though the pace of growth may have eased slightly from August.

* China has set a deadline of 2019 to impose tough new sales targets for electric plug-in and hybrids vehicles, slightly relaxing an earlier plan to launch the rules from next year that had left global automakers worried about being able to comply.

* New orders for U.S.-made capital goods increased more than expected in August and shipments maintained their upward trend, pointing to underlying strength in the economy despite an anticipated drag on growth from Hurricanes Harvey and Irma.

* President Donald Trump said on Wednesday an unnamed foreign leader told him at the United Nations last week that the country would soon announce plans to build or expand five automobile industry factories in the United States.

* Trump proposed on Wednesday the biggest U.S. tax overhaul in three decades, calling for tax cuts for most Americans, but prompting criticism that the plan favors business and the rich and could add trillions of dollars to the deficit. (nL2N1M80Q1)

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MARKET NEWS

* Asian shares tried to regain some poise on Friday after a tough week in which the gathering risk of a U.S. rate rise lifted Treasury yields towards nine-year highs and boosted borrowing costs across the region.

DATA/EVENTS

0830 U.K. GDP Q2 1230 U.S. Personal Income Aug 1345 U.S. Chicago PMI Sept 1400 U.S. U Mich Sentiment Final Sept 1430 U.S. ECRI weekly index weekly

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.6591 Chinese yuan renminbi)

(Reporting by Naveen Thukral; Editing by Joseph Radford)