METALS-Copper caught between weak Chinese data, hopes for stimulus

By Eric Onstad

LONDON, Sept 15 (Reuters) - Copper prices hesitated above $10,000 a metric ton on Monday, balancing downbeat data from top metals consumer China with hopes for stimulus measures and U.S. interest rate cuts.

Benchmark three-month copper CMCU3 on the London Metal Exchange edged up 0.1% to $10,073 a ton in official open-outcry trading, after hitting an intra-day high of $10,101, close to an over-five-month high of $10,126 touched on Friday.

Data showed growth in China's factory output and retail sales in August slumped to their weakest since last year, keeping pressure on Beijing to roll out more stimulus.

"This week the theme is stimulus, not only whether we can get some more in China following that data dump, which wasn't exactly pretty, but also in the U.S. with a rate cut expected later this week," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

The U.S. Federal Reserve is widely expected to cut rates by 25 basis points at its meeting this week following weak job market reports.

Investors were also eyeing U.S.-China negotiations in Madrid, which were focused on the divestment from TikTok by Chinese owner Bytedance as part of broader talks on tariffs and economic policy.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 closed daytime trade 0.4% higher at 81,000 yuan ($11,371.77) per ton.

LME copper prices have gained 14% this year, but have struggled to make much headway above the psychological $10,000 level.

Hansen said he was watching a double-top technical formation in LME copper, based on highs of $10,164.50 in March this year and $10,158 in September last year.

"That massive double top is really keeping the market capped for now. I think we probably need some economic stimulus for that to be taken out in the short term," he said.

LME aluminium CMAL3 edged up 0.2% in official activity to $2,694 a ton after touching the strongest since July 29 at $2,705 and nickel CMNI3 added 0.5% to $15,460, while lead CMPB3 lost 0.6% to $2005.50, tin CMSN3 slipped 0.7% to $34,725 and zinc CMZN3 dipped 0.2% to $2,950.50.

For the top stories in metals, click TOP/MTL

($1 = 7.1229 Chinese yuan)