Copper steady as traders weigh US data, progress on ending shutdown

SHANGHAI, Nov 12 (Reuters) - Copper was little changed on Wednesday after U.S. private-sector labor data added to expectations of a Federal Reserve rate cut, while markets looked to progress on ending the prolonged U.S. government shutdown.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 was up 0.02% at 86,720 yuan ($12,174.65) a ton as of 0311 GMT.

The benchmark three-month copper CMCU3 also posted minimal movement, easing 0.03% to $10,824 a ton.

Payroll processor ADP said on Tuesday that firms in the United States shed more than 11,000 jobs in the week through late October, though it reported last week that 42,000 jobs were added in the full month of October.

The ADP report, which serves as an alternative to official labor data, unavailable due to the U.S. government shutdown, added to recent signs of softening labor conditions.

Some Fed officials have cited similar trends in arguing for the possibility of another rate cut to support growth.

Expectations of a potential rate reduction weighed on the U.S. dollar =USD, offering some support to commodities traded in the greenback. A weaker dollar makes dollar-priced metals more desirable for investors using other currencies.

Meanwhile, the longest U.S. government shutdown in history is nearing a possible end, as members of the Republican-controlled House of Representatives returned to Washington on Tuesday for a vote on a bill to fund federal agencies.

Market participants said the possible resolution could reduce near-term uncertainty and restore the flow of key economic data, though broader risk sentiment remained cautious.

Elsewhere among SHFE base metals, aluminium SAFcv1 gained 0.28%, lead SPBcv1 was up 0.17%, tin SSNcv1 climbed 1.43%, zinc SZNcv1 dropped 0.44%, and nickel SNIcv1 declined 0.90%.

Among other LME metals, lead CMPB3 ticked up 0.12%, zinc CMZN3 and nickel CMNI3 both declined 0.39%, tin CMSN3 dipped 0.18%, and aluminium CMAL3 was little changed.