Shanghai copper down

London copper prices fell on Monday, reversing early gains under the influence of a firming dollar, dragging Shanghai lower, on worries in foreign exchange markets about Europe's response to the eurozone debt crisis. "The turn in the dollar has stopped copper in its tracks. But we think this is a short-term deal. China is still buying, and the US economy is developing better than we thought," a trader in Singapore said.
"$10,000 a tonne is very close. A lot will hinge on the data from China and the United States." Shanghai's benchmark third-month copper futures contract fell 280 yuan to 70,870 yuan a tonne, but front month copper which expired Monday rose 140 yuan to 70,600 yuan, though volumes at 2,080 lots were tiny. China's central bank on Friday said it was raising lenders' required reserves by 50 basis points from January 20, in its seventh increase since early 2010. The move, following an interest rate rise in December, is Beijing's latest step to mop up excess cash to hold down inflation.