Wires

METALS-LME copper rebounds on China policy, Sino-U.S. trade truce

SINGAPORE, Jan 6 (Reuters) - London copper prices bounced back on Monday as policy easing by China the world's biggest consumer of industrial metals - and the soon-to-be signed trade deal between Washington and Beijing boosted prospects of higher demand for the ductile metal.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange was up 0.5% at $6,157 a tonne by 0148 GMT, while the most-traded copper contract on the Shanghai Futures Exchange lost 0.3% to 48,920 yuan ($7,017.95) a tonne.

* A Chinese trade delegation is planning to travel to Washington on Jan. 13 for the signing of the U.S.-China Phase 1 trade deal, the South China Morning Post reported on Sunday, citing a source briefed on the matter.

* China will keep its inflation target unchanged this year at about 3%, sources told Reuters, suggesting policymakers will roll out more economic support measures while avoiding aggressive stimulus.

* China will keep monetary policy prudent, flexible and appropriate, and continue to deepen financial reforms, the central bank said on Sunday, reiterating previous policy statements.

* The People's Bank of China last week reduced the amount of cash that all banks must hold as reserves, releasing around 800 billion yuan ($114.84 billion) in funds to shore up the slowing economy. It was the eighth cut in the reserve requirement ratio (RRR) since early 2018.

* Copper and most other industrial metals fell on Friday as the killing of a top Iranian commander by the United States sent shockwaves through markets, pushing oil prices sharply higher.

* The U.S. manufacturing sector contracted in December by the most in more than a decade with order volumes crashing to a nearly 11-year low and factory employment falling for a fifth straight month, according to an industry report released on Friday.

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MARKETS NEWS

* Asian share markets ran into turbulence on Monday as a flare-up of tensions in the Middle East sent gold to its highest in almost seven years while oil flirted with four-month peaks.

DATA/EVENTS

0145 China Caixin Services PMI Dec0500 India IHS Markit Svcs PMI Dec0850 France Markit Serv, Comp PMIs Dec0855 Germany Markit Services PMI Dec0855 Germany Markit Comp Final PMI Dec0900 EU Markit Serv, Comp Final PMIs Dec0930 UK Reserve Assets Total Dec1445 US Markit Serv, Comp Final PMIs Dec

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 = 6.9707 yuan) (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)