London copper near 1-week low on continued inflation worries

London copper remained near one-week lows on Monday, weighed by weaker Chinese prices and growing expectations that strong U.S. jobs data and higher oil prices could push the Federal Reserve toward rate hikes. Benchmark three-month copper on the London Metal Exchange increased 0.19% to $13,545 a metric ton by 0710 GMT. On Friday, LME copper hit its lowest since May 28, pressured by a rising dollar and growing inflation fears. Higher interest rates dampen prospects for industrial metals as they depend more on economic growth. Official data showed the U.S. economy added 172,000 jobs in May, more than double analyst expectations. The strong data came less than two weeks ahead of Kevin Warsh's debutas head of the U.S. Federal Reserve. Expectations of a December rate hike have jumped to around 78% according to the CME's FedWatch tool. In China, the most-traded copper contract on the Shanghai Futures Exchange declined 1.54% to 104,120 yuan ($15,340.87) a ton. It tracked a tech selloff in Asia, as China and Hong Kong stock markets opened lower on Monday, following U.S. peers. The Yangshan copper premium , which reflects demand for imported copper, fell to $64 a ton by the end of the day on Friday, its lowest since April 30. Buyers in China have historically been sensitive to elevated prices. Further pressuring copper were oil prices, which increased 4.84% on Monday after Iran and Israel traded fire on Sunday and Monday. Among other LME metals, aluminium dipped 0.06%, zinc fell 0.31%, lead lost 0.5%, nickel ticked 0.08% higher and tin shed 2.71%. On SHFE, aluminium lost 0.8%, zinc slid 0.87%, lead fell 0.37%, nickel added 0.25% and tin dropped 6.62%.