Reuters reported that London copper climbed helped by a weaker dollar and hopes for more economic stimulus in the United States and China, which would boost global demand for metals.

Expectations for stimulus in China grew after Premier Mr Wen Jiabao said that the country continued to face headwinds despite cooling inflation, with market participants saying an imminent cut in bank reserve ratios could be possible.

Although a string of recent data in the United States had appeared to reduce the likelihood of stimulus there, inflation figures on Wednesday indicated the Federal Reserve has room to stimulate the economy.

Fundamentals;
1. Three month copper on the London Metal Exchange had ticked up 0.6% to USD 7,428 per tonne by 0127 GMT after losing 0.4% the session before.

2. The most active November copper contract on the Shanghai Futures Exchange fell CNY 10 to CNY 54,480 per tonne weighed down by investors rolling over their November contracts to December and catching up with losses in London.

3. US consumer prices were flat in July for a second straight month and the YoY increase was the smallest in more than 1-1/2 years, giving the Fed space to ease policy further to tackle high unemployment.

4. But recent positive data including stronger industrial production and a pick up in job growth in July points to the economy improving.

5. China's economy faces big headwinds though cooling inflation is giving the government more leeway to manoeuvre monetary policy.

6. Mr Philipp Roesler economy minister of German said that any purchase of bonds from countries such as Spain and Italy by the European Central Bank must be linked to clear commitments to structural reform and budget discipline.