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London copper prices rise; weak US economic data and a strong dollar cap gains

London copper rose on Thursday after comments by U.S. president Donald Trump about a possible trade deal with China. This signaled a de-escalation of tensions with the world's largest metals consumer. However, a stronger dollar as well as weak U.S. economic data limited gains.

As of 0228 GMT, the benchmark copper price on London Metal Exchange (LME), was up 0.5%, to $9,167.5 per metric ton.

Trump said that on Wednesday he had "potential" deals with India and South Korea, and that there was a good chance the U.S. would make a deal China.

Investors focused on signs that the trade war could be cooling off as they pushed the dollar higher on Thursday.

The greenback price of commodities is more expensive for buyers who use other currencies.

The fact that the U.S. economic growth was negative in the first three months also weighed on the mood.

The U.S. economic contraction contracted for the 1st time in 3 years during the first quarter. Businesses rushed to import goods in order to avoid tariffs, which would have increased costs. This underscored the chaotic nature of Trump's trade policy.

ANZ Research stated that "Incoming data continue to signal an economic downturn in the U.S. An increased recession risk is underscored by a slower pace of hiring and a smaller-than-expected drop in GDP."

Other London metals saw aluminium rise 0.08%, to $2.401.5 per ton. Zinc fell 0.1%, to $2.589.5. Lead rose 0.03%, to $1.958. Tin advanced 0.2%, to $31,400. And nickel dropped 0.1%, to $15,400.

The Mainland China Market will be closed on May 1st for a 5-day holiday to celebrate Labour Day. (Reporting and editing by Rashmi aich; reporting by Neha arora)

(source: Reuters)