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London Metal Exchange (LME) metals ended quietly mixed in routine trading on Wednesday with prices still held in ranges, traders said.
"It was a bit of a non-event in many ways," one trader said, referring to the day's trading.
"The market was on the defensive initially, particularly with some stock rises, while other macro factors failed to provide much impetus."
Options declarations passed uneventfully and key economic data released in the United States, while coming in below analyst expectations, had only a small impact on the dollar.
The dollar lifted back slightly against major currencies after a gauge of US manufacturing slipped, but not as much as some analysts had suspected.
The Institute for Supply Management reported that its August manufacturing gauge fell to 59.0 from 62.0 in July. Economists had expected an August reading of 60.
However, US payrolls still loomed largest on investors' horizon, and a third consecutive decline in the ISM gauge's employment component in August could spell trouble for the dollar.
If Friday's August employment report shows scant job creation after a disappointingly low 32,000 new jobs in July, doubts are likely to grow further on the Federal Reserve's optimistic view about the US economy and its commitment to "measured" interest rate rises.
Copper closed the kerb at $2,774, down $8 from Tuesday's kerb close.
"There was slight relief that the ISM figure was not too bad but the copper workers' strike in Peru has receded as a factor so prices were mid-ranging," the trader said.
A pay strike by 1,500 workers at Southern Peru Copper Corp entered a second day on Wednesday with management and union negotiators deadlocked and no talks scheduled, the union said.
Traders said aluminium had steady consumer support, while nickel lifted on technical buying. Aluminium ended at $1,700, up $3, while nickel was at $12,725, up $450.
Tin ended at $9,165, up $240, while lead dropped $27 to $831.
"Tin lifted on trade buying and producers are rarely selling, while lead suffered from technical selling," the trader said.
Zinc was at $974, unchanged.

Copyright Reuters, 2004

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