Top Stories
Top Stories
Wires

METALS-Base metals rise amid trade talks, Fed rate cut hopes

Mai Nguyen

(Adds quotes; updates prices)

SINGAPORE, July 30 (Reuters) - Industrial metals rallied on Tuesday amid market expectations of a U.S. rate cut and as U.S. and Chinese officials meet in Shanghai to discuss their year-long trade dispute.

The U.S. Federal Reserve is expected to lower interest rates by 25 basis points, cutting for the first time in a decade and potentially weakening the U.S. dollar, making greenback-priced metals cheaper for holders of other currencies.

Meanwhile, U.S. and Chinese officials are due to meet on Tuesday in Shanghai for talks on a year-long trade dispute that has weighed on global economic growth and demand for industrial metals.

Three-month copper on the London Metal Exchange was up 0.1% at $6,025.50 a tonne by 0338 GMT, while aluminum edged up 0.1%, nickel rose 0.5%, zinc advanced 0.4% and lead increased 0.7%.

The most-traded copper contract on the Shanghai Futures Exchange rose 0.9% to 47,310 yuan ($6,869.96) a tonne, aluminum edged up 0.4%, nickel jumped 2.6% and zinc advanced 1.7%.

"Market still have some hope from this trade talk...even though we know not much can be achieved in one meeting. Then there's a hope for a Fed's rate cut," said analyst Helen Lau of Argonaut Securities.

FUNDAMENTALS

* TRADE TALKS: Expectations for progress at the U.S.-China trade meeting are low, so officials and businesses are hoping Washington and Beijing can at least detail commitments for "goodwill" gestures and clear the path for future negotiations.

* JAPAN: Japan's exports of zinc in June fell 8.2% from a year earlier to 5,198 tonnes while refined copper exports dipped 3.8% during the same period to 55,469 tonnes.

* For the top stories in metals and other news, click or

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 = 6.8865 Chinese yuan renminbi) (Reporting by Mai Nguyen; editing by Richard Pullin and Rashmi Aich)