Copper, Aluminium Rally on Fresh Jobs Hopes

SINGAPORE, June 5 -- Copper futures in London and Shanghai rose on Friday, buoyed by positive U.S. jobs data and a resumption of the dollar's slide, traders said.

    FUNDAMENTALS

    * Shanghai's benchmark third month copper contract rose 1,470 yuan to 40,960 yuan by 0104 GMT, its highest in seven weeks. The most-active September contract rose 3.7 percent to 41,060 yuan.

    * London Metal Exchange copper for delivery in three months rose $60, or 1.2 percent, to $5,0858 a tonne. Copper rose 2.2 percent in the previous session, and touched a 7-1/2-month high of $5,145 on Tuesday.

    * Data Thursday showed the number of U.S. workers filing new claims for jobless benefits fell for a third straight week, indicating a slower deterioration of the job market and rekindling hopes of economic recovery.

    * LME aluminium rose $5.50 to $1,570, while Shanghai metal jumped 4 percent to 13,530 yuan.

    * LME aluminium rose more than 5 percent to their highest level in four weeks on Thursday after a second straight day of inventory declines boosted prices.

    MARKETS NEWS

    * U.S. stocks rose on Thursday as a brokerage's upbeat view on U.S. banks drove a run-up in financials, while soaring prices of oil and other commodities lifted natural resource companies on bets the economic slump is waning. The Dow Jones industrial average gained 74.96 points to 8,750.24.

    * Oil prices were near $69 per barrel after hitting a seven-month high on Thursday following U.S. data showing a drop in jobless claims, boosting expectations an economic recovery could revive ailing energy demand.

    * The euro edged higher against the U.S. dollar as the European Central Bank signaled it would keep interest rates steady for some time, reinforcing the market's belief that the global recession was easing.

    DATA/EVENTS

    * The following data are expected on Friday:

    * Swiss consumer price index for May (0715 GMT)

    * ECB's Trichet, Stark deliver speeches (0750 GMT)

    * UK May producer price index (0830 GMT)

    * U.S. May unemployment rate (1230 GMT)

    * U.S. May non-farm payrolls (1230 GMT)

    * U.S. April consumer credit (1900 GMT)

    (Source: Reuters)