Copper edges up on China stimulus hopes
Recasts, updates prices at 0410 GMT
NEW DELHI, Dec 12 (Reuters) -London copper prices nudged higher on Thursday amid expectation of stimulus measures from top consumer China in the wake of the recent announcement that policymakers would do more for the economy.
However, a steady U.S. dollar kept gains in check.
Three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.5% at $9,241 per metric ton, as of 0410 GMT.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 was up 0.01% to 75,500 yuan ($10,396.01) a ton.
The focus is on China's Central Economic Work Conference meeting this week for more clarity on key targets and potential stimulus measures for next year.
China earlier this week said it would switch to an "appropriately loose" monetary policy stance, and "more proactive" fiscal levers next year.
Meanwhile, the U.S. dollar traded in a narrow range on Thursday after hitting a two-week high in the previous session, supported by a rise in U.S. Treasury yields, even as market players bet the U.S. Federal Reserve will cut interest rates next week. FRX/
A strong greenback makes dollar-priced metals more expensive for holders of other currencies.
Separately, Reuters reported China was considering allowing a weaker currency next year as the country braces for higher trade tariffs in a second Donald Trump presidency.
"Reports that China is considering a weaker CNY (yuan) to defend against U.S. import tariffs weighed on the market sentiment, as this could lead to capital outflows and a declining equity market," ANZ Research said in a note.
LME aluminium CMAL3 was up 0.6% at $2,617.5 a ton, nickel CMNI3 gained 1.4% to $16,080, zinc CMZN3 was up 0.2% at $3,130.5, lead CMPB3 nudged 0.2% lower to $2,038.5 and tin CMSN3 gained 0.1% to $29,995.
SHFE aluminium SAFcv1 edged up 0.7% to 20,515 yuan a ton, nickel SNIcv1 was up 2.9% at 128,950 yuan, tin SSNcv1 added 1.1% to 251,490 yuan, while zinc SZNcv1 rose 0.3% to 25,985 yuan and lead SPBcv1 dropped 0.7% to 17,530 yuan.
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Reporting by Neha Arora; Editing by Sonia Cheema
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