Copper little changed at open; charts point higher

SINGAPORE, Feb 28 (Reuters) - London copper was little
changed at the open on Monday, ticking $15 lower after a near 3
percent rally in the previous session that put the market back
on a more bullish technical trend.	

 FUNDAMENTALS	

 * Three-month copper on the London Metal Exchange 
fell $15 to $9,735 a tonne by 0106 GMT, after having touched
$9,311, a near one-month low last week.	

 * Japan's industrial output rose for the third straight
month in January in a sign solid demand from fast-growing Asian
markets is driving the economy towards a moderate recovery.
 	

 * That came  news that U.S. consumer sentiment rose to its
highest in three years in February. .	

 * U.S non-commercial investors cut their net length in COMEX
copper by almost 6,000 lots to 23,230, while money managers cut
positions by almost 10,000 lots to 24,193 lots/	

 * "The reduction in length looks temporary to me. Alter the
record high a bunch of people closed out longs and there was
also a bit of short selling going on," said a trader in Sydney.	

 * "The rally Friday probably squeezed out a lot of those
positions, but I think we could see more gains as the last of
those bets are closed."	

 * Technically, LME copper may extend its gain to $9,941.50,
resuming its long-term uptrend, Reuters analyst Wang Tao said.	

 * The recovery from the Feb. 24 low at $9,311 is so swift
that it apparently indicates the correction, labeled as an
"A-B-C" wave cycle, could have ended, he said.	

 * But geo-political concerns could still upset the apple
cart, with concerns about the impact the crisis in Libya will
have on global demand through higher oil prices and fresh
sabre-rattling on the Korean peninsula, after North Korea said
it will fire across a land border with South Korea if Seoul
continues its anti-North psychological campaign. [ID:nTOE71O04K}	

 * In industry news, copper miner Equinox Minerals plans to
make a bid for Canadian base metal miner Lundin Mining ,
a move that could potentially scuttle a proposed C$9 billion
tie-up between Lundin and Inmet Mining. 	

 * Lundin said on Sunday it has been advised that Equinox
Minerals  plans to make an unsolicited
take-over bid before markets open on Monday.	

 MARKETS NEWS 	

 * U.S. stocks rose on Friday, bouncing back from a three-day
sell-off as oil prices stabilized. The S&P 500 lost 1.7 percent
for the week, breaking a three-week streak of gains. Friday's
bounce followed a late recovery Thursday that showed buyers were
ready to support shares after a bout of selling.	

 * The dollar found a steadier footing early in Asia on
Monday and crawled off a record low versus the Swiss franc as
risk appetite made a tentative comeback, but the mood remained
cautious given ongoing tensions in Libya and fears of contagion.	
 	

 * NYMEX crude for April delivery was up $1.74 at
$99.62 a barrel by 0002 GMT, after settling up 60 cents on
Friday. Brent crude rose by $1.76 to $113.90 a barrel.	

 * Spot gold edged up 0.3 percent at $1,413.49 an
ounce. Gold was on course for a 6.2 percent monthly gain, its
biggest since November 2009.	

 DATA/EVENTS 	

 * The following data is expected on Monday: (Times in GMT) 	

 - 2350 Japan Industrial output prelim  Jan 2011 	

 - 2350  Japan IP forecast 1 mth ahead Jan 2011  	

 - 0430  Japan Govt oil demand, trade data  Jan  	

 - 0500  Japan     Construction orders Jan 2011 	

 - 0530  India     QUARTERLY GDP yy   Oct 2010  	

 - 1000  EZ        Inflation, final yy Jan 2011 	

 - 1330  U.S.      Personal income mm  Jan      	

 - 1445  U.S.      Chicago PMI         Feb      	
 	
 Base metals prices at 0106 GMT
 Metal              Last       Change   Pct Move YTD pct chg
 LME Cu            9735.00    -15.00    -0.15      1.41
 SHFE CU FUT MAY1    73430       840     +1.16      2.20
 LME Alum          2560.00     -5.00     -0.19      3.64
 SHFE AL FUT MAY1    17125        30     +0.18      1.69
 HG COPPER MAR1     441.45     -2.15     -0.48     -0.56
 LME Zinc          2492.00      1.00     +0.04      1.55
 SHFE ZN FUT MAY1    19375       125     +0.65     -0.51
 LME Nickel       28101.00    -49.00     -0.17     13.54
 LME Lead          2506.00     -9.00     -0.36     -1.73
 LME Tin          32050.00      0.00     +0.00     19.14
 LME/Shanghai arb^          1425
 Dollar/yuan          6.5720 \ 6.5771
 Shanghai and COMEX contracts show most
  active months
 ^ LME 3-m copper in yuan, including 17 pct
  VAT, minus SHFE  third 
 month
	
 (Reporting by Nick Trevethan; Editing by Ed Lane)

(Source: http://af.reuters.com/article/metalsNews/idAFL3E7DS01W20110228)