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METALS-London copper hovers at 2-year high, weaker dollar underpins

MELBOURNE, July 26 (Reuters) - London copper climbed on Wednesday to its highest in two years, as momentum from a weaker dollar and hopes that China will further ease its monetary policy helped fuel chart-based buys.

FUNDAMENTALS

* London Metal Exchange copper was up 0.5 percent at $6,257 a tonne, as of 0221 GMT, extending from Monday's gains. Earlier in the session, prices hit $6,280 a tonne, its highest since May 2015.

* Traders said technical momentum was fueled when copper broke long-standing resistance through $6,000-$6,050 and as copper prices adjust to a weaker dollar environment.

* "Fundamentals are fine, but not that vigorous to fuel such a rally," said a source at a China smelter.

* Shanghai Futures Exchange copper rallied to its highest in over five months at 49,880 yuan ($7,383) overnight.

* U.S. consumer confidence jumped to a near 16-year high in July amid optimism over the labor market while house prices maintained their upward trend in May, which could boost consumer spending after recent sluggishness.

* Nearly a fifth of the $94 trillion in global infrastructure investment needed by 2040 risks being unfunded if current spending trends continue, the G20-backed Global Infrastructure Hub said on Tuesday.

* Brazil unveiled plans on Tuesday to raise revenue from mining royalties by 80 percent, the latest measure to shore up government finances, and cut red tape in attempt to attract more foreign investment amid a weak economic recovery.

* Zambia's Konkola Copper Mines (KCM) said on Tuesday it was halting operations indefinitely at its Nchanga underground mine (NUG) in Chingola state due to theft of high voltage cables.

* China notified the World Trade Organization (WTO) on Tuesday that it would stop accepting shipments of rubbish such as waste plastic and paper as part of a campaign against "foreign garbage."

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MARKETS NEWS

* Asian stocks edged up early on Wednesday after Wall Street indexes notched record highs, while the dollar was steady as investors awaited the Federal Reserve's policy decision later in the day for more clues on its tightening plans.

DATA/EVENTS 0830 U.K. GDP Q2 1400 U.S. New home sales June 1800 U.S. FOMC statement 2300 South Korea GDP Q2 PRICES

BASE METALS PRICES 0207 GMT Three month LME 6250.5

copper

Most active ShFE 49620

copper

Three month LME 1937

aluminum

Most active ShFE 14555

aluminum

Three month LME zinc 2832 Most active ShFE zinc 23430 Three month LME lead 2313 Most active ShFE lead 17750 Three month LME 9945

nickel

Most active ShFE 81380

nickel

Three month LME tin 20290 Most active ShFE tin 147120

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 399.8 LME/SHFE ALUMINIUM LMESHFALc3 -653.79 LME/SHFE ZINC LMESHFZNc3 624.35 LME/SHFE LEAD LMESHFPBc3 -1067.1 LME/SHFE NICKEL LMESHFNIc3 2503.41

($1 = 6.7560 Chinese yuan)

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