SINGAPORE, Aug 27 (Reuters) - Copper prices rose on Tuesday after sentiment was boosted by signs of progress in resolving a prolonged trade war between the United States and China.
U.S. President Donald Trump on Monday predicted a trade deal with China after positive gestures by Beijing, but gains in metals were capped as the bruising trade war has a tendency to reverse direction in a short period of time.
Copper, often used to gauge economic health, has been hit by the prospect of weaker global demand as the trade conflict between the world's two biggest economies entered the second year, despite fundamentals pointing to a larger shortage of the commodity.
* PRICES: Three-month copper on the London Metal Exchange rose 0.2% to $5,644 a tonne by 0144 GMT, while the most-traded copper contract on the Shanghai Futures Exchange advanced 0.6% to 46,350 yuan ($6,534.80) a tonne.
* COPPER: Germany's Wieland, one of the world's largest copper product makers, said on Monday it would reduce working hours at a German plant from next month because of the slowing global economy.
* CHINA RESOURCE TAX: Chinese legislators approved a law on Monday that will give local governments authority to tax as many as 164 different resources, including fossil fuels, minerals and eventually water, the finance ministry said on Monday.
* CHINA HOUSING: China's housing market is expected to slow this year with sales forecast to drop, as Beijing steps up efforts to scrutinize banks and provincial governments to keep a lid on lending and prices, a Reuters poll showed.
* SHANGHAI PRICES: Most Shanghai metals rose, with nickel jumping 0.9%, zinc advancing 0.2%, lead increasing 0.9% while aluminum and tin were flat.
* OTHER PRICES: London aluminum fell 0.5%, nickel rose 0.6%, zinc dropped 1% and lead eased 0.2%.
* LITHIUM: Australia's Pilbara Minerals Ltd executed a binding terms sheet with POSCO to form a joint venture in South Korea to develop and operate a lithium hydroxide and carbonate chemical conversion facility.
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* Asian stocks tracked global peers higher while safe-haven bonds sold off as signs Sino-U.S. trade hostilities might be easing helped restore investor confidence after the previous session's rout.
DATA/EVENTS AHEAD (GMT)
0600 Germany GDP Detailed QQ SA Q2
0600 Germany GDP Detailed YY NSA Q2
0645 France Business Climate Mfg Aug
1400 US Consumer Confidence Aug
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 = 7.0928 Chinese yuan renminbi) (Reporting by Mai Nguyen; Editing by Sriraj Kalluvila)