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METALS-Shanghai metal prices dip after Fed testimony, weak China data

BEIJING, Feb 28 (Reuters) - Shanghai metals mostly lost ground on Wednesday after new U.S. Federal Reserve Chairman Jerome Powell's pledge to stick with gradual increases in interest rates boosted the dollar and growth in Chinese manufacturing slowed more than expected.

FUNDAMENTALS

* SHFE COPPER: The most-traded April copper contract on the Shanghai Futures Exchange slipped 1 percent to 52,820 yuan ($8,341.36) a tonne by 0208 GMT and is set to end February at around the same level it started the month.

* LME COPPER: Three-month copper on the London Metal Exchange inched up 0.1 percent to $7,028 tonne, having closed down 1.3 percent on Tuesday.

* OTHER METALS: Shanghai zinc, nickel and lead were down 1 percent, 0.3 percent and 1.3 percent, respectively, with only aluminium in positive territory, rising 0.4 percent.

* USD: The dollar stood near a three-week high against a basket of currencies on Wednesday, after Powell's upbeat views on the economy bolstered bets on further Fed interest rate hikes this year. A stronger dollar makes metals more expensive for holders of other currencies, weighing on prices.

* CHINA: Growth in China's manufacturing sector in February slowed more than expected to the weakest in over 1-1/2 years as the Lunar New Year holidays disrupted business activity and tougher pollution rules curtailed factory output.

* ALUMINIUM: The U.S. Commerce Department said on Tuesday it had made a final determination that imports of aluminum foil from China are being sold in the United States at less than their fair value and producers are benefiting from subsidies from Beijing.

* NORNICKEL: Russian billionaire Vladimir Potanin's Cyprus-based firm Whiteleave, aluminium giant Rusal and Roman Abramovich's Crispian have agreed to delay a sale of a 2 percent stake in Norilsk Nickel by Abramovich to Potanin, a lawyer for Whiteleave said.

* SCOTIA: Canadian lender Bank of Nova Scotia said on Tuesday it would keep its ScotiaMocatta metals trading business, ending months of speculation that it could be sold.

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MARKETS NEWS

* Asian shares faltered on Wednesday and bonds were sold off as risk appetite soured after comments from the new Federal Reserve Chair revived fears about faster rate rises in the United States.

DATA/EVENT AHEAD (GMT)

0700 Germany GfK consumer sentiment Mar 0745 France Consumer spending Jan 0745 France Detailed GDP Q4 0900 Germany Unemployment rate Feb 1000 Euro zone Inflation flash Feb 1330 U.S. GDP second estimate Q4 1445 U.S. Chicago PMI Feb 1500 U.S. Pending home sales Jan

PRICES

BASE METALS PRICES 0207 GMT Three month LME copper 7028 Most active ShFE copper 52820 Three month LME aluminium 2150.5 Most active ShFE aluminium 14290 Three month LME zinc 3484.5 Most active ShFE zinc 26420 Three month LME lead 2551.5 Most active ShFE lead 19230 Three month LME nickel 13835 Most active ShFE nickel 105120 Three month LME tin 21690 Most active ShFE tin 148490

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 999.53 LME/SHFE ALUMINIUM LMESHFALc3 -1533.35 LME/SHFE ZINC LMESHFZNc3 297.69 LME/SHFE LEAD LMESHFPBc3 -314.42 LME/SHFE NICKEL LMESHFNIc3 1763.59

($1 = 6.3323 Chinese yuan)

(Reporting by Tom Daly; Editing by Sunil Nair)