METALS-Shanghai metals to open up after break, chasing LME

Shanghai copper was seen opening about 1 percent higher on Friday after a week-long absence for celebrations marking China's National Day, while London futures edged down after rallying nearly 4 percent in the prior session. Shanghai zinc may see the biggest surge as it chases a 9 percent rally to a 15-month high in London during the Chinese holidays and could touch its expanded upside limit. Aluminium was also expected to rise, chasing a gain of 1.8 percent in the international market.

 
FUNDAMENTALS 

Three-month copper on the London Metal Exchange MCU3 fell $25 to $6,305 a tonne by 0019 GMT. LME aluminium MAL3 dipped $9 to $1,900 and zinc MZN3 shed $20 to $2,060. * When Shanghai markets closed on Sept. 30, LME copper was around $6,220, aluminium at $1,875 and zinc at $1,910. * Sentiment was supported after Macqaurie Bank said on Thursday the world copper market stands to lose 50,000 tonnes of supply this year and tip back into deficit after a mechanical failure at Australia's giant Olympic Dam mine cut production capacity by 80 percent. [ID:nSYD432722] * Also supportive were a broad fall in the dollar and a rise in equity markets as the number of U.S. workers filing new claims for jobless insurance fell to a nine-month low last week and U.S retailers posted their first monthly sales rise in more than a year. [ID:nN08520274]
MARKETS NEWS
Gold inched down but remained near $1,050 after rising to on all-time high for a third straight day in the previous session. The dollar hit a 14-month low against a basket of currencies on Thursday, as growing optimism about an economic

recovery prompted demand for riskier assets at the expense of the safe-haven greenback.  [USD/]

 U.S. stocks rose on Thursday as a surprising quarterly profit by Alcoa Inc got third-quarter earnings off to a strong start. [.N] Oil prices rose to settle above $71 a barrel on Thursday,supported by better-than-expected data and a weaker dollar.

[O/R] DATA EVENTS
 
The following data is expected on Friday: ECON - Germany consumer price index, September (0600 GMT) - Germany trade balance, August           (0600 GMT) - France industrial production, August    (0645 GMT) - Italy industrial production, August     (0800 GMT) - UK producer price index, September      (0830 GMT) - UK trade balance, August                (0830 GMT) - OECD leading indicator, August          (1000 GMT) - U.S. international trade, August        (1230 GMT) - U.S. ECRI weekly                        (1430 GMT) PRICES
 Base metals prices at 0018 GMT
 Metal         Last       Change   Pct Move  End 2008  Pct chg
09
 LME Cu        6305.00    -25.00     -0.39    3060.00  
106.05
 LME Alum      1900.00     -9.00     -0.47    1535.00   
23.78
 COMEX Cu**     288.70      0.00     +0.00     139.50  
106.95
 LME Zinc      2060.00    -20.00     -0.96    1208.00   
70.53
 LME Nickel   19250.00   -245.00     -1.26   11700.00   
64.53
 LME Lead      2270.00    -15.00     -0.66     999.00  
127.23
 LME Tin      14825.00   -120.00     -0.80   10700.00   
38.55
 Dollar/yuan          6.8263 \ 6.8265
 1st contract month for COMEX copper

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