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Base metals pattern lower as market trims bets on size of Fed rate cut

The majority of base metals begun September on a weaker note on Monday, as the market cut bets about an aggressive policy alleviating in the U.S., and China's. making data increased need concerns.

Three-month copper on the London Metal Exchange was. down 0.4% at $9,199.50 per metric lot by 0411 GMT, after publishing. a minor gain in August, with rising possibility of a September. rate cut.

The most-traded October copper agreement on the Shanghai. Futures Exchange slid 0.5% to 73,620 yuan ($ 10,364.05). a heap.

Trading and sentiment are largely dominated by U.S. information,. stated Guangzhou Futures analysts.

Data revealed on Friday upbeat costs figures in the world's. leading economy, leading markets to trim the chance of a half-point. easing from the Federal Reserve.

That increased the dollar, which was hovering around a. two-week top on Monday.

A strong dollar makes it more expensive to buy the. greenback-priced commodity and for this reason weighs down metals rates.

Vital for the Fed will be the payrolls report later this. week.

Also weighing on the market was demand from China. Copper. stocks have decreased in current weeks after lowered costs. urged purchasing, also with a standard great fall season.

A main production study on Saturday revealed China's. production activity sink to a six-month low in August as. factory gate costs toppled and owners had a hard time for orders.

On the other hand, a private sector study which mainly covers. smaller, export-oriented company, revealed the nation's. manufacturing activity swung back to growth in August as brand-new. orders drove production.

LME aluminium shed 0.8% to $2,427.50 a heap, nickel. slid 0.8% to $16,625, zinc moved 1.5% lower to. $ 2,853.50, tin lost 1.9% at $31,740, while lead. increased 0.1% to $2,055.

SHFE aluminium slipped 0.9% to 19,560 yuan a lot,. lead slipped 0.4% to 17,220 yuan, while nickel. fell 2.5% to 128,290 yuan, zinc trimmed 1.3% lower to. 23,720 yuan and tin lost 2.1% to 257,390 yuan.

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(source: Reuters)