Dec. 5 (Bloomberg) -- Copper fell after the biggest daily gain yesterday in 11 weeks as traders turned their attention to the likelihood of stimulus cuts by the Federal Reserve.
Metal for delivery in three months on the London Metal Exchange fell as much as 0.5 percent to $7,060 a metric ton and traded at $7,066 at 4:21 p.m. in Tokyo. The price climbed 1.9 percent yesterday, the most since Sept. 19.
The U.S. added more jobs than analysts predicted last month, a private report showed, fueling concern tomorrow’s payrolls data will bring forward a reduction to the Fed’s monthly bond buying. Jobless claims and economic growth figures for the U.S. are due today. Copper is down 11 percent this year.
“Signs of improvement in the U.S. job market stoked concern the Fed will start tapering, curbing the demand outlook for metals,” said Kaname Gokon, deputy manager of research at Okato Shoji Co. in Tokyo. A stoppage of Codelco’s Chuquicamata smelter and declining stockpiles would limit further drops in copper, he said.
Employers added 185,000 workers last month after they rose 204,000 in October, according to the median estimate in a Bloomberg survey before the Labor Department’s report. U.S. companies added 215,000 jobs in November, according to the ADP Research Institute report yesterday, more than predicted in a Bloomberg survey and the biggest increase in a year.
Codelco workers at the smelter in Chile went on a strike over bonus talks from Dec. 3, the company said yesterday. LME copper stockpiles, at the lowest since February, fell for a 23rd day to 415,425 tons, exchange data showed yesterday.
Copper for delivery in February on the Shanghai Futures Exchange rose 0.7 percent to close at 50,720 yuan ($8,326) a ton. Futures for delivery in March lost 0.8 percent to $3.2235 a pound on the Comex in New York.
On the LME, aluminum also dropped, while zinc, nickel and lead were little changed. Tin rose.
--Editors: Brett Miller, Jarrett Banks