* Mine supply issues ease oversupply concerns for
copper-Argonaut
* Coming Up: Fed releases statement after policy meet at
1800 GMT
(Adds late prices, details)
By Melanie Burton
MELBOURNE, July 29 (Reuters) - London copper jumped on
Wednesday as short sellers rushed to cover their positions amid
speculation about further stimulus from China, and ahead of a
policy decision from the U.S. Federal Reserve.
Asian shares clung to modest gains on Wednesday on pledges
Beijing would buy more shares if needed, while caution ruled
elsewhere before the Fed ends a two-day policy meeting later on
Wednesday with markets divided on whether it will take a hawkish
or dovish stance. MKTS/GLOB
Three-month London Metal Exchange copper CMCU3 gained
0.28 percent to $5,312.50 a tonne by 0742 GMT, climbing $12.50
above the previous session's close.
Shanghai Futures Exchange SCFcv1 copper surged 2.49
percent to 39,090 yuan ($6,297) a tonne.
Traders said the rally was sparked by short-covering.
"The market always going to be prone to a short-covering
rally, but it will most likely fail all things being equal ...
what has (fundamentally) changed?" said a broker in Hong Kong.
The China Securities and Regulatory Commission (CSRC) said
it was investigating share dumping incidents on Monday, when
Chinese markets suffered their worst single-day plunge in more
than eight years. ID:nL3N1082V2
Market attention was turning to a Federal Reserve meeting
later in the day for clues about the timing of a rate rise,
which market consensus has pegged at September. ID:nL1N101184
"If the rate rise continues to be pushed out, the USD would
presumably weaken a little bit and that would help
commodities," said analyst Daniel Morgan of UBS in Sydney. "But
that's not our base case scenario."
U.S. consumer confidence suffered its biggest blow in four
years in July on a less upbeat jobs outlook, while home
appreciation in major cities stalled in May, suggesting a spring
pause in housing demand. ID:nL1N10816F
Copper's fragile supply pipeline was back in the spotlight,
offering support to prices.
A week-long strike by Codelco contract workers in Chile
briefly stopped work at its second-largest copper mine on
Tuesday, while analysts said Freeport-McMoRan Inc FCX.N may
have to cut output at its small North American copper and
molybdenum mines to help it reduce costs. ID:nL1N1081EO]
ID:nL1N1081MX
"News flow on supply disruptions we believe eased market
concerns on global oversupply," said Argonaut Securities in a
note.
Elsewhere in Chile, Antofagasta ANTO.L cut its full-year
copper production guidance to 665,000 from 695,000, citing
delays at its Antucoya mine. ID:nL5N10919B
Gains in copper helped to spur a broader advance on the
ShFE, as zinc SZNcv1 , tin SSNcv1 , lead and nickel SNIcv1 ,
SPBcv1 all rallied around 3 percent.
Nickel was also helped by signs of declining supply.
Canada's Sherritt International S.TO reduced its 2015
nickel production target to 78,000-82,000 tonnes from
80,000-86,000 tonnes, while Australia's Mincor MCR.AX is
cutting output by up to 56 percent over the six months to
end-December. ID:nL3N1085BT ID:nL3N1091GX
PRICES
Three month LME copper CMCU3
Most active ShFE copper SCFcv1
Three month LME aluminium CMAL3
Most active ShFE aluminium SAFcv1
Three month LME zinc CMZN3
Most active ShFE zinc SZNcv1
Three month LME lead CMPB3
Most active ShFE lead SPBcv1
Three month LME nickel CMNI3
Most active ShFE nickel SNIcv1
Three month LME tin CMSN3
Most active ShFE tin SSNcv1
($1 = 6.2079 Chinese yuan renminbi)