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METALS-London copper buoyed under $6,000 as China factories expand

MELBOURNE, July 3 (Reuters) - London copper was supported just below the $6,000 level on Monday, the first trading day of the second half, as brighter factory demand from China underpinned prices.

FUNDAMENTALS

* LME COPPER: London Metal Exchange copper was little changed at $5,935 a tonne by 0156 GMT. While China's technical picture has improved in recent weeks, the metal has come up against formidable resistance at the $6,000 mark, having hit a three-month top of $5,965 on Friday.

* SHFE COPPER: Shanghai Futures Exchange copper edged down 0.2 percent at 47,340 yuan ($6,979) a tonne.

* SHFE METALS: Among other metals, SHFE aluminium nickel and lead were all up more than 1 percent amid rising prices of import feed coal and an environmental crackdown in China.

* CHINA PMI: China's factories grew at the quickest pace in three months in June, buoyed by strong new orders, in a sign of stabilising growth, though analysts say a further slowdown in the world's second-biggest economy is inevitable as Beijing cracks down on debt risks.

* TANKAN: Japanese big manufacturers' business confidence improved in June from three months ago.

* DOLLAR: The dollar edged off from a nine-month low against a basket of currencies early on Monday, as signs central banks in Europe were moving away from accommodative monetary policies kept the euro and sterling well bid.

* U.S. STEEL: U.S. President Donald Trump will speak with Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe on Sunday, calls that come as frustration builds in the White House over North Korea's nuclear program and overcapacity in the steel market.

* INVESTORS: Hedge funds and money managers added 9,531 contracts to their net long position in copper, bringing it to 58,816 contracts, the data showed, still below highs seen earlier in June .

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MARKETS NEWS

* Asian stocks held two-years highs on Monday, starting the new month on a solid footing after two quarters of gains while expectations of credit tightening by the world's central banks kept global bond markets under pressure.

DATA/EVENTS 0145 China Caixin manufacturing PMI final Jun 0750 France Markit manufacturing PMI Jun 0755 Germany Markit/BME manufacturing PMI Jun 0800 Euro zone Markit manufacturing PMI final Jun 0900 Euro zone Unemployment Rate May 1400 U.S. ISM manufacturing PMI Jun 1400 U.S. Construction spending May PRICES

BASE METALS PRICES 0147 GMT Three month LME copper 5937 Most active ShFE copper 47350 Three month LME aluminium 1926 Most active ShFE aluminium 14080 Three month LME zinc 2756 Most active ShFE zinc 22715 Three month LME lead 2289 Most active ShFE lead 17960 Three month LME nickel 9420 Most active ShFE nickel 77430 Three month LME tin 19970 Most active ShFE tin 145740

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 476.71 LME/SHFE ALUMINIUM LMESHFALc3 -1098.3 LME/SHFE ZINC LMESHFZNc3 246.52 LME/SHFE LEAD LMESHFPBc3 -1016.99 LME/SHFE NICKEL LMESHFNIc3 1817.43

($1 = 6.7829 Chinese yuan)

(Reporting by Melanie Burton; Editing by Amrutha Gayathri)