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LME METALS-Factors To Watch on Feb 28

Published 02/28/2011, 03:24 AM
Updated 02/28/2011, 03:28 AM
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LONDON, Feb 28 (Reuters) - Copper rose almost 1 percent on Monday, extending the previous session's near 3 percent gains after an earthquake in top producer Chile.

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PRICES * Three-month copper on the London Metal Exchange was trading at $9,827 a tonne at 0800 GMT compared with $9,750 at the close on Friday.

* Aluminium was at $2,565 a tonne from $2,564.

DATA/EVENTS

* Euro zone Jan final inflation data - 1000

* U.S. personal income/spending for Jan - 1330

* U.S. pending home sales for January - 1500

* U.S. Chicago PMI for Feb - 1445

MARKET NEWS

* Asian shares rise as financials regain some of last week's losses and higher oil prices lift energy stocks, but gains are capped by fears of further outflows from emerging equities to developed markets.

* The dollar finds a steadier footing as market players cover short positions ahead of important events this week that could crack its recent range-bound trend.

* Brent crude rises over 1 percent to near $114 a barrel as protests in Oman fuel concern about security of supply even as top exporter Saudi Arabia pumps more.

* European stocks are set to pause following Friday's rebound as investors digest election results in debt-stricken Ireland and await earnings from HSBC.

FUNDAMENTALS

* A strong earthquake of 6.0 magnitude struck Chile on Sunday about 23 miles (37 km) south of Concepcion. Chile's state emergency office Onemi said there were no reports of damage or injuries and no risk of a tsunami.

* Copper miner Equinox Minerals has launched a C$4.8 billion ($4.9 billion) unsolicited bid for Canada's Lundin Mining, a move that may scuttle a proposed C$9 billion tie-up between Lundin and Inmet Mining and kick off a bidding war for the base metal miner.

TECHNICALS

* Copper support was at $9,500 a tonne and resistance at $9,940. The 14-day RSI was at 53.7.

* Aluminium support was at $2,470 a tonne and resistance at $2,585. The 14-day RSI was at 59.1.

(Reporting by Sue Thomas; editing by Keiron Henderson)

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