METALS-London copper near 1-week low on continued inflation worries

- London copper remained near one-week lows on Monday, weighed by weaker Chinese prices and growing expectations that strong U.S. jobs data and higher oil prices could push the Federal Reserve toward rate hikes.

Benchmark three-month copper CMCU3 on the London Metal Exchange increased 0.38% to $13,570.5 a metric ton by 0331 GMT.

On Friday, LME copper hit its lowest since May 28, pressured by a rising dollar and growing inflation fears.

Higher interest rates dampen prospects for industrial metals as they depend more on economic growth.

Official data showed the U.S. economy added 172,000 jobs in May, more than double analyst expectations. The strong data came less than two weeks ahead of Kevin Warsh's debut as head of the U.S. Federal Reserve.

Expectations of a December Fed rate hike have jumped to around 78% according to the CME's FedWatch tool.

In China, the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 declined 1.5% to 104,160 yuan ($15,354.45) a ton.

It tracked a tech selloff in Asia, as China and Hong Kong stock markets opened lower on Monday, following U.S. peers.

The Yangshan copper premium SMM-CUYP-CN, which reflects demand for imported copper, fell to $64 a ton by the end of the day on Friday, its lowest since April 30. Buyers in China have historically been sensitive to elevated prices.

Further pressuring copper were oil prices /LCOc1, which increased 3.68% on Monday after Iran and Israel traded fire on Sunday and Monday.

Among other LME metals, aluminium CMAL3 added 0.33%, zinc CMZN3 added 0.33%, lead CMPB3 dipped 0.27%, nickel CMNI3 added 0.4% and tin CMSN3 lost 1.48%.

Elsewhere on SHFE, aluminium SAFcv1 lost 0.74%, zinc SZNcv1 lost 0.74%, lead SPBcv1 dipped 0.21%, nickel SNIcv1 gained 0.79% and tin SSNcv1 plunged 5.97%.

($1 = 6.7837 Chinese yuan renminbi)