METALS-London copper steady as fresh US strikes on Iran weigh on sentiment

- London copper held steady on Tuesday, as support from a weaker dollar was offset by higher oil prices after the latest U.S. strikes on Iran dampened hopes of a swift resolution to the Middle East conflict and fuelled concerns over the global economic outlook.

Three-month copper on the London Metal Exchange CMCU3 was steady at $13,672 a metric ton by 0319 GMT.

The most-traded copper contract SCFcv1 on the Shanghai Futures Exchange was down 0.3% to 105,050 yuan ($15,460.46) a ton.

U.S. forces on Monday conducted strikes in southern Iran against targets including boats attempting to lay mines and missile launch sites, in what it described as defensive actions.

The strikes came as Iran's top negotiator and its foreign minister were in Doha for talks with Qatar's prime minister on a potential deal with the U.S. to end the three-month-old war.

Brent crude oil prices rose after the U.S. military action. Higher energy prices have dampened the outlook for metals by raising concerns that an energy shock could squeeze global growth and manufacturing.

"Base metals are likely to remain range-bound and sensitive to headlines in the near term," said Tim Waterer, chief market analyst at KCM Trade.

"Should a peace deal emerge that meaningfully lowers oil and drags the dollar lower with it, that would ease inflation concerns and significantly boost the attractiveness of base metals."

Elsewhere on the LME, aluminium CMAL3 was unchanged, zinc CMZN3 rose 0.6%, lead CMPB3 was up 0.1%, nickel CMNI3 lost 1.2% and tin CMSN3 climbed 1.1%.

Among other SHFE metals, aluminium SAFcv1 ticked 0.1% higher, zinc SZNcv1 was up 0.5%, lead SPBcv1 fell 0.2%, nickel SNIcv1 lost 1.1% and tin SSNcv1 added 1.4%.


DATA/EVENTS (GMT)

0500

Japan Leading Indicator Revised Mar

1400

US Consumer Confidence May

($1 = 6.7827 Chinese yuan)