METALS-Shanghai copper seen up at open after LME recovery

SINGAPORE, Nov 30 (Reuters) - Shanghai copper is expectedto open higher on Monday, chasing a recovery in London, whichfell and then recovered almost $200 as Dubai's debt crisis sentshockwaves through markets. Over the weekend the United Arab Emirates offered banksemergency support, the first steps to ease fears that a loomingdebt default by two of Dubai's flagship firms could derail theglobal economic recovery. [ID:nGEE5AS0AH] But the move to inject liquidity into Dubai's banks by thecentral bank of the Gulf Arab state, together with promises byneighbouring city-state Abu Dhabi to provide selective supportto Dubai companies, was seen as by analysts as the bareminimum. FUNDAMENTALS * Three-month copper on the London Metal Exchange MCU3rose $34 to close Friday at $6,855 a tonne, having slumped aslow as $6,620 in the session. Copper extended gains in latetrade to $6,860. * When Shanghai closed on Friday, LME copper stood at$6,675 a tonne. * Dubai, U.S. jobs data, Black Friday retailers results anda chance for Congress to throw fireballs at Fed chief BenBernanke are likely to keep investors on edge for the week. * "The Dubai debt debacle is something we will keep a closeeye on. After the initial shock the market is taking a fairlysanguine view -- this is no Lehman Brothers -- yet," a dealerin Sydney said. * "But there is a worry that this may be the first in aseries of rogue debt waves and if we see more, we could swampthe economic recovery." * LME copper stocks rose 2.3 percent to 435,075 tonnes lastweek, their highest since late April. Stocks have risen everyweek since the end of August, but last week's rise was thesmallest in percent terms since the week ending Nov 1. MCU-STOCKS * Copper inventories in Shanghai Futures Exchangewarehouses fell 6 percent from a week earlier. [MTL/CNSTX] * For graphics showing global stocks, click: here here here MARKET NEWS * Spot gold XAU= fell 0.4 percent to $1,172.45 per ounceby 0025 GMT, against New York's notional close of $1,176.70. Bullion hit a low of $1,136.80 an ounce on Friday, the weakestsince Nov. 20. * U.S. stocks fell more than 1 percent in a truncatedsession on Friday after a market holiday Thursday as thepossible debt default by Dubai World led to fresh concernsabout the global financial system. [.N] * The dollar eased on Monday after the United ArabEmirates' central bank set up an emergency facility on Sundayto support bank liquidity in the first policy response toDubai's debt woes.