SHANGHAI: London copper fell on Thursday after France and Germany clashed over the European Central Bank's (ECB) role in handling the euro zone debt crisis, stirring doubt about the region's ability to solve its problems.
Three-month copper on the London Metal Exchange fell 0.4 percent to $7,699.50 a tonne by 0711 GMT, after rising 0.6 percent previously.
France and Germany, Europe's two key powers, disagreed over whether the ECB should intervene more forcefully to halt the euro zone's accelerating debt crisis after modest bond purchases failed to calm markets.
The most-active February copper contract on the Shanghai Futures Exchange rose 0.6 percent to close the session at 56,680 yuan ($8,932.17) per tonne, after falling 2 percent on Wednesday.
"Copper prices are still consolidating and seeking new technical ranges. LME copper is weighed down by the euro zone debt crisis, but Shanghai copper is boosted by renewed buying interest among consumers today, which accounts for the substantial backwardation of prompt-versus-February contract," said Dongzheng Futures trader Du Xiaohua.
The prompt ShFE December copper contract last traded at a premium of 700 yuan to the most active February contract.
Finance Minister Francois Baroin said on Wednesday France was headed for a slowdown, not a recession, and the government was doing everything to preserve its AAA credit rating, though he ruled out further austerity measures.
Thousands will protest in Athens on Thursday to warn Lucas Papademos' new government that despite parliament's backing for more austerity steps, many ordinary Greeks are not ready to endure further years of painful belt-tightening.
In China, foreign direct investment (FDI) climbed nearly 16 percent in the first 10 months of 2011 from a year earlier, but Beijing warned of a possible grim export outlook due to Europe's debt problems.
Adding to investor caution, BHP Billiton, the world's biggest miner, has turned more wary on the outlook for commodity markets, warning on Thursday that customers are starting to face tighter access to trade finance and some are cutting production.
In Indonesia, union workers at Freeport-McMoRan Copper & Gold Inc's Grasberg copper mine, who have been on strike since mid-September, are sticking to pay demands for $7.50 an hour, a wage request deemed "excessive" by the US miner's chief executive.
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