SINGAPORE, Aug 4 (Reuters) - London copper eased on Tuesday, having moved in a narrow range for weeks, as investors weighed between bullish and bearish factors following a strong rally in the past few months.
Three-month copper on the London Metal Exchange fell 0.3% to $6,473.50 a tonne by 0209 GMT. The contract moved in a tight range of less than 1% in each of the past three weeks after surging 52% in four months to a two-year high in July.
Escalating U.S.-China tensions, supply continuity from Chile, resurgence of COVID-19 cases and seasonally weaker China demand kept a lid on further rallies.
However, prices have been supported by economic recovery in some countries, a weaker dollar and hopes of further U.S. stimulus package.
The most-traded copper contract on the Shanghai Futures Exchange rose 1.3% to 51,710 yuan a tonne, tracking overnight gains in London.
FUNDAMENTALS
* The front-month ShFE copper contract was traded at a
60-yuan discount to the second-month contract, suggesting that
nearby supply tightness has eased, after ShFE inventories
* China's July excavator sales jumped over 40% year-on-year, the Shanghai Securities News reported, indicating a strong construction sector that also consumes metals. Construction machinery demand could stay solid for the rest of 2020, it said.
* OTHER PRICES: LME aluminium fell 0.5% to $1,743.50 a tonne, zinc declined 0.8% to $2,306 a tonne. ShFE aluminium rose 1% to 14,735 yuan a tonne, a 27-month high, while nickel jumped 1.6% to 111,140 yuan a tonne.
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MARKETS NEWS
* Asian shares were on track to open higher, after strong manufacturing data and gains in tech stocks boosted global equities and the U.S. dollar overnight.
DATA/EVENTS (GMT)
0430 Australia RBA Cash Rate Aug
1400 US Factory Orders MM June
(Reporting by Mai Nguyen; Additional reporting by Tom Daly in Beijing, Editing by Sherry Jacob-Phillips)