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METALS-London copper buoyed near highest since early April

MELBOURNE, June 26 (Reuters) - London copper eased on Monday but remained within reach of the highest in more than two months, after expectations of the U.S. interest rate hike trajectory were tempered which weighed on the dollar.

FUNDAMENTALS

* LME COPPER: London Metal Exchange copper was down 0.1 percent at $5,794 a tonne, as of 0214 GMT, after 1 percent gain in the previous session. LME copper on Friday topped out at $5,854.50, its highest since April 7.

* SHFE COPPER: Shanghai Futures Exchange copper gained 0.6 percent to 46500 yuan ($6,799) a tonne.

* U.S. INFLATION: The Federal Reserve should wait on any further rate increases until it is clear that inflation is reliably heading to the Fed's 2 percent target, St. Louis Fed President James Bullard said on Friday, highlighting the central bank's struggle over how to weigh a recent slip in the rate of price increases.

* DOLLAR: The dollar fell against a basket of major currencies on Friday recording its biggest one-day fall in three weeks, on persistent doubts whether the Federal Reserve would raise interest rates again this year due to softening inflation data.

* MINING POLICY: South African Mines Minister Mosebenzi Zwane said on Friday that he was open to talks with companies over a new industry charter, as he rebuked the mining firms for planning to take the new rules to court, saying they were "negotiating in bad faith."

* U.S. HOUSING: New U.S. single-family home sales rose in May and the median sales price surged to an all-time high, suggesting the housing market had regained momentum.

* DRC COPPER: Democratic Republic of Congo's chamber of mines said on Friday it expects the country to produce a record 1.05 million tonnes of copper in 2017, up 2.4 percent over last year, as prices recover and large projects raise production.

* EUROPEAN ECONOMY: Although a better economy is helping global banks to turn the corner a decade after the financial crisis began, euro zone lenders remain a dampener on the sector's recovery, the Bank for International Settlements said on Sunday.

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MARKETS NEWS

* Asian shares edged up on Monday on optimism about global growth while the dollar was on the defensive as a subdued U.S. inflation outlook capped U.S. bond yields.

DATA/EVENTS

0800 Germany Ifo business climate for Jun

1230 U.S. Durable goods for May

1230 U.S. National activity index May

1430 U.S. Dallas Fed manufacturing index Jun

* Several markets in Asia closed for Eid holiday on Monday including Singapore, Malaysia, Indonesia, India and the Philippines.

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.8389 Chinese yuan)

(Reporting by Melanie Burton; Editing by Sherry Jacob-Phillips)