Wires

METALS-Copper rises for 2nd session as market eyes U.S.-China trade deal

Naveen Thukral

(Recasts with change in copper price move, adds nickel) SINGAPORE, Nov 18 (Reuters) - London copper gained more ground on Monday as hopes of a Sino-U.S. trade deal kept investor optimism afloat, underpinning prices.

Three-month copper on the London Metal Exchange was

up 0.1% at $5,856 a tonne, as of 0419 GMT, after a 0.6% gain in the previous session. The most-traded copper contract on the

Shanghai Futures Exchange added 0.3% at 47,020 yuan

($6,722.81) a tonne.

TRADE DEAL HOPES: Positive comments on trade from officials in Washington and Beijing are expected to support the market. CONSTRUCTIVE TALKS: On Saturday, Chinese state media said the two sides had "constructive talks" on trade in a high-level phone call that included Vice Premier Liu He, U.S. trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. AGREEMENT SOON: White House economic adviser Larry Kudlow said on Thursday the two nations were getting close to an agreement, citing what he called very constructive talks with Beijing about ending the 16-month spat. ECONOMIC GROWTH: The tariff war has hampered global economic activity and pushed metals prices sharply lower. INDUSTRIAL OUTPUT: China's industrial output grew significantly slower than expected in October, underlining fears of a sharp drop in demand in the world's largest consumer of metals. INTEREST RATE: China's central bank lowered the interest rate on reverse repurchase agreements by five basis points, the first reduction in the short-term liquidity tool in more than four years. COPPER OUTPUT: China's October refined copper output rose 17.9% year-on-year to a record high of 868,000 tonnes. Production of lead, zinc and alumina also advanced. NICKEL STOCKS: Rising nickel inventories in Shanghai weighed

on prices. Shanghai nickel slid almost 2%, while LMEnickel was down 0.6%.

ALUMINIUM RESERVES: Japan's Marubeni Corp said aluminium stocks held at three major Japanese ports at the end of October fell 2.6% to 318,200 tonnes from the previous month. <AL-STK-JPPRT> LME ALUMINIUM: Headline aluminium inventories in LME-registered warehouses rose by 44,200 tonnes to a little under 1.1 million tonnes, the highest since June. <MALSTX-TOTAL>

PRICES Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium 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 = 6.9941 Chinese)

(Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips and Subhranshu Sahu)