Copper firms on weaker dollar, with US election and China in focus
Updates prices as of 1749 GMT
By Polina Devitt
LONDON, Oct 30 (Reuters) -Copper prices firmed as the dollar weakened on Wednesday while traders braced for a U.S. presidential election that looks too close to call and awaited a decision on further economic stimulus measures by top metals consumer China.
Three-month copper CMCU3 on the London Metal Exchange (LME) rose 0.2% to $9,545 a metric ton by 1749 GMT.
The U.S. currency weakened, making dollar-priced metals more attractive for buyers using other currencies, as markets assessed stronger than expected private sector jobs numbers and data showing that the U.S. economy grew solidly in the third quarter. FRX/
"Clearly the U.S. election is the main thing on the radar and nobody wants to take large positions ahead of it," said Dan Smith, head of research at Amalgamated Metal Trading.
A Reuters/Ipsos poll on Tuesday showed Democratic presidential candidate Kamala Harris leading Republican rival Donald Trump 44% to 43% among registered voters nationally, within the margin of error. Other opinion polls show tight margins in the seven election battleground states.
In China, meanwhile, a large fiscal stimulus package will be under consideration by the country's top legislative body next week, according to two Reuters' sources with knowledge of the matter.
"Even though this has not moved the needle for metals so far, it indicates that the Chinese government recognises that there is a problem and is doing something about it. This means an upside risk for metals in the medium term," Smith added.
Copper, used in power and construction, is down 3% this month, sliding from a 3-1/2-month high of $10,158 a ton in late September when China pledged stimulus to boost the economy.
"We are still in the camp where people are optimistic about China, and with the recent copper price fall the algo models we run started giving a buy signal, meaning that the market was oversold," Smith said, referring to algorithmic computer models that place buy and sell orders largely on momentum signals.
In other metals, LME aluminium CMAL3 fell 1.6% to $2,615 a ton, zinc CMZN3 lost 1.1% to $3,084, lead CMPB3 was steady at $2,004.50 and tin CMSN3 was down 0.4% at $30,930.
Nickel CMNI3 slid for a 13th session and was last down 0.4% at $15,805 for its lowest since Sept. 11.
Reporting by Polina Devitt in London
Additional reporting by Mai Nguyen in Hanoi
Editing by Jason Neely and David Goodman
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