US Copper Ends down on Gloomy Jobs, Philly Fed Data

NEW YORK, Aug 19 (Reuters) –

U.S. copper futures finished
lower on Thursday, ending a three-day winning streak, as
investors sold off the red metal after two dreary U.S. economic
reports showed a jump in jobless claims filings and negative
readings in manufacturing activity.

Copper for September delivery HGU0 finished 3.10 cents,
or 0.93 percent, lower at $3.3185 per lb on the COMEX metals
division of the New York Mercantile Exchange.

Range spanned $3.2915 to $3.39, its highest since Aug 9.

COMEX estimated final copper futures volume at 41,175
lots, fewer contracts than Wednesday's 48,586 lots.

Open interest was up by 165 lots at 141,099 contracts as
of Aug. 18.

Copper began the session with a firm tone, bolstered by a
euro strength against the dollar and forecasts for improved
economic data - traders.

The industrial metal hit a 10-day high before tumbling
when two U.S. economic reports showed results that were much
worse than forecast - analysts.

New weekly U.S. claims for unemployment benefits
unexpectedly climbed to a nine-month high last week, another
setback to the frail economic recovery.

Factory activity in the U.S.Mid-Atlantic region
unexpectedly contracted in August to its lowest level in more
than a year, heightening worries over the sustainability of the
economic recovery.

The index of leading economic indicators, a key gauge of
the U.S. economy's prospects was slightly higher in July, but
revised lower in June, pointing to a "slow expansion through
the end of the year," a private research group said.

"Copper came off in response to jobless claim, Philly
Fed, leading indicators. But I would say there is still some
support," said metals analyst Justin Lennon at Mitsui Bussan
Commodities (U.S.A.).

Though copper sold off fairly swiftly after the weak
reports, it pulled up from the lows by the close on modest
volume - traders.

The dollar rose against the euro after the weak U.S. data
were released, hurting dollar-denominated copper in overseas
markets - traders.
 
Steep losses in U.S. equity markets added to copper
selling - traders.
 
London Metal Exchange (LME) copper warehouse stocks rose
225 tonnes on Thursday to 403,525 tonnes, well below the 6-1/2
year highs at 555,075 tonnes in mid-February.
 
COMEX copper inventories <COMEX/WHSTAT> lost 339 short
tons at 96,638 short tons as of Wednesday.

Benchmark copper for three-months delivery CMCU3 on the
LME closed at $7,309 a tonne from $7,390 a tonne at the close
on Wednesday.