Copper Gains in London on China, Before U.S. Jobs: LME Preview

Feb. 1 (Bloomberg) -- Copper climbed in London on signs of manufacturing growth in China and before the U.S. jobs report that economists say will show more progress in the labor market.

Market News:

-- The yen weakened below 92 against the dollar for the first time since 2010, dragging Asian currencies lower. The region’s stocks dropped before U.S. jobs data and after a Chinese manufacturing gauge declined. Treasuries fell. NSN MHJ34N6S972G <GO>

-- Chinese manufacturing expanded in January, validating the nation’s reluctance to add to policy stimulus amid increasing inflation concern. NSN MHIVJ20D9L35 <GO>

-- Investors are snapping up commodities at the fastest pace in a year, signaling the rally for raw materials will continue after prices reached a four-month high this week. NSN MHIG1P6TTDS1 <GO>

-- The labor market in the U.S. probably kept making progress in January even as lawmakers quarreled over the federal budget, economists said before a report today. NSN MHID5T1A74E9 <GO>

-- An explosion that ripped through the headquarters of Petroleos Mexicanos in Mexico City left at least 14 people dead and about 100 injured, with the cause yet to be determined, according to the government. NSN MHIZ9U6JIJUO <GO>

-- A gauge of Australian manufacturing fell to a 3 1/2-year low in January as the sustained strength of the currency outweighed the central bank’s reduction in interest rates to a half-century low. NSN MHIGVS6KLVRZ <GO>

-- South Korea’s exports rose the most in 11 months as the timing of a Lunar New Year holiday distorted the comparison with the same period a year earlier. NSN MHILQG6JTSG7 <GO>

-- New York City’s housing market is poised to lag behind other markets for the next two years even as a national recovery in real estate continues. NSN MHI6WV1A74E9 <GO>

Metals News:

-- Copper traders are the most bullish in 15 months on mounting confidence that the U.S. economy will rebound at a time when China’s recovery is gaining momentum. NSN MHJ18U6S972X <GO>

-- Gecamines, Democratic Republic of Congo’s state-owned mining company, is considering seeking a partner to develop two copper sites that may contain 5 million metric tons, Chief Executive Officer Ahmed Kalej said. NSN MHI2Q46K50Y8 <GO>

-- Gold may have a sharp rally as investors seek so-called real assets, while grains will drop if U.S. crop conditions improve, according to Elliott Management Corp., the $21 billion hedge fund founded by Paul Singer. NSN MHJ0MG1A1I4T <GO>

Metals Prices:

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-- Copper advanced 0.7 percent to $8,225 a metric at 7:14
a.m. on the London Metal Exchange. Relative strength index 61.
-- Aluminum climbed 0.3 percent to $2,097 a ton. RSI 56.
-- Nickel increased 0.4 percent at $18,395 a ton. RSI 67.
-- Lead dropped 0.2 percent to $2,426 a ton. RSI 63.
-- Tin was unchanged at $24,770 a ton. RSI 60.
-- Zinc fell 0.4 percent to $2,137 a ton. RSI 65.

Other markets:         Last          % Change   % YTD

U.S. Dollar Index     79.13           -0.1       -0.8
Crude Oil            $97.53            0.0        6.2
Gold              $1,663.05            0.0       -0.7
MSCI World Index   1,405.86            0.0        5.0

Economic Events:
                                    Survey    Prior      Time
                                                        (London)
GE PMI Manufacturing                 48.8      48.8      08:55
US Payrolls Change                   165K      155K      13:30
US Manufacturing Jobs Change          10K       25K      13:30
US Unemployment Rate                  7.8%      7.8%     13:30
US U. of Michigan Confidence         71.5       71.3     14:55
US Construction Spending              0.6%      -0.3%    15:00
US ISM Manufacturing                 50.6       50.2     15:00
US Total Vehicle Sales               15.2M      15.3M    22:00

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--Editors: Claudia Carpenter, John Deane