MELBOURNE, July 9 (Reuters) – London copper snapped back sharply on Monday from near one-year lows hit in the session, as a weak dollar forced short holders to cover positions even amid simmering trade war tension.
* COPPER: London Metal Exchange copper rallied by 1.6 percent to $6,383.50 by 0108 GMT after prices slumped to $6,221.50 a tonne on Friday, which was the weakest since late July 2017. Shanghai Futures Exchange copper also rebounded, by 1.1 percent to 49,810 yuan ($7,502) a tonne.
* BACKWARDATION: There is still huge tightness between the July-August copper contract, suggesting shorts may have to deliver into warehouses in the next week if they can. July is trading at an $11 premium against August. MCUN18-Q18
* Other LME metals were all around 1 percent higher from Friday.
* U.S. ECONOMY: The U.S. economy created more jobs than expected in June, but steady wage gains pointed to moderate inflation pressures that should keep the Federal Reserve on a path of gradual interest rate increases this year.
* TRADE WARS: The global economy is starting to show signs of strain from the “America First” push of U.S President Donald Trump who will hear renewed pleas to step back from a broader trade war when he visits Europe in the coming week.
* TRADE WARS: Wall Street has taken the China-U.S. tariffs enacted on Friday in its stride so far, but investors are on alert for a ramp-up in the trade conflict.
* MINE WAGE TALKS: Labor negotiations at BHP Billiton Plc Escondida copper mine in Chile, the world’s largest, are entering into the final three weeks before a 30-month contract expires at the end of July.
* ALUMINA: Chinese alumina producer Luoyang Heungkong Wanji Aluminium Co Ltd said on Friday it has cut output of alumina by 680,000 tonnes on an annual basis, a day after state-run Chalco announced its own alumina cuts citing low prices.
* CHINA ECONOMY: China’s broad economic growth was expected to ease to around 6.6 percent in the second half of this year, the State Information Center said on Saturday.