METALS-Copper erases gains on strong dollar; China stimulus in focus

(Recasts, updates prices after Shanghai market close) NEW DELHI, Dec 11 (Reuters) - London copper prices erased all gains on Wednesday, tracking a strong U.S. dollar, while markets looked out for stimulus signals from top consumer China this week. Three-month copper on the London Metal Exchange (LME) CMCU3 shed 0.2% at $9,198 per metric ton, as of 0759 GMT. The contract had earlier touched $9,314 per metric ton, the highest since Nov. 12. The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 rose 0.1% to 75,490 yuan ($10,413.56) a ton. The dollar held firm against other major peers ahead of a highly anticipated reading of U.S. inflation that could provide cues into the pace of Federal Reserve's interest rate cuts. FRX/ A stronger dollar makes greenback-priced metals less attractive for buyers holding other currencies. Prices advanced earlier in the session on optimism that China would do more for the economy. China will adopt an "appropriately loose" monetary policy next year, the first easing of its stance in some 14 years, alongside a more proactive fiscal policy to spur economic growth, the Politburo said. The focus is now on China's Central Economic Work Conference meeting this week for more clarity on key targets and potential economic stimulus measures for 2025. "Changes in fiscal or monetary policy typically take two-three quarters to translate into real-market impact. As a result, we do not expect to see a continuous improvement in the region until the second half of 2025," Sucden Financial said in a note. "Without clear signs of sustained recovery in the construction sector, it will be challenging for the market to establish a lasting upward trend." LME aluminium CMAL3 was down 0.5% at $2,595.5 a ton, lead CMPB3 nudged 0.2% lower to $2,059.5, tin CMSN3 lost 0.1% to $29,750, zinc CMZN3 eased 0.3% at $3,124.5, while nickel CMNI3 gained 0.3% to $15,755. SHFE aluminium SAFcv1 edged up 0.1% to 20,400 yuan a ton, tin SSNcv1 added 0.2% at 248,550 yuan, zinc SZNcv1 rose 0.2% to 25,870 yuan, while lead SPBcv1 dropped 0.3% at 17,665 yuan and nickel SNIcv1 fell 1.2% to 125,590 yuan. For the top stories in metals and other news, click TOP/MTL or MET/L ($1 = 7.2492 Chinese yuan) (Reporting by Neha Arora; Editing by Sherry Jacob-Phillips and Sumana Nandy) (([email protected];)) (( For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C Foreign exchange rates FX= SPEED GUIDES LME/INDEX ))