METALS-Copper seen rising; but steady dlr may cap gains

METALS-Copper seen rising; but steady dlr may cap gains

SINGAPORE, Nov 26 (Reuters) - Shanghai copper futures were seen opening higher on Thursday, chasing gains in London, which hit a new 14-month peak in the previous session on a softer dollar and positive US housing and jobs data.

But in early trade the greenback steadied versus the euro, having slipped to a 15-month low in the previous session against a basket of currencies, weighing on oil, dulling gold's appeal and potentially limiting upside in base metals.



FUNDAMENTALS

* Three-month copper on the London Metal Exchange ended 1.7 percent higher on Wednesday at $6,885 a tonne, and extended gains in after-hours dealing to $7,010.

* LME copper stood at $6,954 a tonne when the Shanghai market closed on Wednesday.

* Positive data on weekly jobless claims, personal consumption, and new home sales added to the feel-good factor following a more positive assessment for 2010 from the Federal Reserve on Tuesday.

* On the downside, rising copper stocks continue to gnaw at investors' sentiment, though at seven day's supply, according to ANZ analysts, are still lower than than the 10-year average of 10 days.

* The lifting of another threat to supply when workers at Antamina, a major copper pit in Peru, said Wednesday they had wrapped up negotiations for a labour agreement, may also dampen enthusiasm for copper, which has rallied around 130 percent this year.

MARKETS NEWS

* Spot gold hit a fresh record high of $1,192.60 in early Asia trade on Thursday. But by 0004 GMT, spot gold was down 0.2 percent at $1,187.50, compared with New York's notional close of $1,190.30.

* U.S. stocks rose in light trading volume on Wednesday, supported by data that pointed to stabilisation in the labour and housing markets, areas that have fed concerns about a "double dip" return to recession.

* The dollar steadied on Thursday after it fell to a more than 15-month low against a basket of six major currencies the previous day.

DATA EVENTS

* The following data is expected on Thursday:

- US markets shut for Thanksgiving holiday

- Euro zone private loans and M3 for October. (0900 GMT) - British CBI retail sales for November. (1100 GMT)