METALS-London copper cuts gains, firmer dollar weighs

SINGAPORE, May 16 (Reuters) - London copper futures trimmed gains on Monday as the dollar firmed against the euro amid worries that Greece may restructure its sovereign debt.

FUNDAMENTALS

* Copper for delivery in three months on the London Metal Exchange fell 0.3 percent to $8,766.25 per tonne by 0100 GMT, following 0.7 percent rebound on Friday after hitting a five-month low on Thursday.

* The most-active July copper contract on the Shanghai Futures Exchange SCFcv1 also opened weaker, falling 0.9 percent to 65,870 yuan. It rose 3.5 percent on Friday from a five-month low on Thursday.

* The euro extended its losses and hit a two-month low against the yen and a six-week trough versus the dollar on Monday.

* The firmer dollar weighed on prices of major commodities. U.S. crude futures CLc1 dropped more than 1 percent to below $99 a barrel, erasing Friday's gains. Gold

and silver also edged lower.

* Greece's debt crisis weighed on the markets ahead of a euro zone finance ministers meeting later in the day to discuss a bailout plan for Portugal and a gathering of the full European Union contingent on Tuesday. [ID:nLDE74E0HA]

* IMF chief Dominique Strauss-Kahn was arrested in New York on Sunday on sexual assault charges. [ID:nN15215355]

* The arrest "might definitely cause some delays in the short term" in the resolution of Greece's problems, though not change the IMF's policy on the indebted country, a Greek official told Reuters. [ID:nLDE74E0BZ]

MARKETS NEWS

* U.S. stocks ended a second week of losses on a down note Friday, reflecting growing worries that stocks are on the precipice of a pullback.

* Japan's Sumitomo Metal Mining and Sumitomo Corp

said on Monday they have agreed to invest about $724 million in Minera Quadra Chile to join a copper mine project. [ID:nL4E7GF0DB] * For the top stories in metals and other news, click

DATA/EVENTS  	
0500  Japan     Consumer confid. index    Apr 2011 	
0900  EZ        Inflation, final yy       Apr 2011 	
0900  EZ        Eurostat trade nsa, EUR   Mar 2011 	
1400  U.S.      NAHB housing market indx  May      	
 	

Base metals prices at 0100 GMT

Metal              Last       Change   Pct Move YTD pct chg
 LME Cu            8766.25    -23.75     -0.27     -8.68
 SHFE CU FUT JUL1    65870      -580     -0.87     -8.32
 LME Alum          2574.00      9.00     +0.35      4.21
 SHFE AL FUT JUL1    16655       -80     -0.48     -1.10
 HG COPPER JUL1     397.15     -1.45     -0.30    -10.54
 LME Zinc          2172.75     17.75     +0.82    -11.46
 SHFE ZN FUT JUL1    16720      -140     -0.83    -14.15
 LME Nickel       24400.00      0.00     +0.00     -1.41
 LME Lead          2280.00    -11.00     -0.48    -10.59
 SHFE PB FUT         16545      -160     -0.96     -9.84
 LME Tin          28600.00      0.00     +0.00      6.32
 LME/Shanghai arb     756

Shanghai and COMEX contracts show most active months

^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE

third month

Shanghai lead launched on March 24

(Reporting by Carrie Ho)

(Source: http://af.reuters.com/article/metalsNews/idAFL4E7GG04120110516)