(Corrects headline to 2-week)
* GRAPHIC-2019 asset returns:
* Tin price hits a 7-month lowBy Pratima DesaiLONDON, July 2 (Reuters) - Copper prices slid to two-weeklows on Tuesday as the spotlight fell on gloomy prospects foreconomic growth and demand after a batch of weak manufacturingactivity data from around the world.Benchmark copper on the London Metal Exchange wasuntraded at the close, but bid down 1.1% at $5,886 a tonne. Theprice of the metal used widely in power and construction earliertouched $5,881, the lowest since June 18."The truce on the trade front between the United States andChina yesterday helped copper and base metals, but the deluge ofdata highlighting manufacturing weakness has damagedconfidence," a metals trader said. Copper prices hit six-week highs at $6,075 on Monday afterthe United States and China agreed to restart trade talks afterU.S. President Donald Trump offered concessions including no newtariffs and an easing of restrictions on technology firm Huawei."Our long-term assessment about the trade talks has notchanged," said INTL FCStone analyst Edward Meir in a note."We still think that the two sides will ultimately fail toreach a deal given that Washington is demanding fundamentalchanges to China's economy that Beijing will not agree to,namely reducing or eliminating state subsidies and downsizinggovernment-sponsored SOEs (state owned enterprises).
CHINA: Chinese manufacturers account for about half ofglobal consumption of base metals, while the United Statesaccounts for nearly 10%. Demand for industrial metals is highlycorrelated with industrial activity.PMIS: China's factory activity unexpectedly shrank in Juneas domestic and export demand faltered, a private sectorbusiness survey showed on Monday, pointing to further strains onits vast manufacturing sector. Manufacturing activity also shrank in most Asian andEuropean countries in June. U.S. manufacturing activity slowed to near a three-year lowin June, the third straight month of declines, with a measure ofnew orders received by factories tumbling .Adding to the gloom was Germany's VDMA engineering body,which slashed its forecast for 2019 production, blaming thetrade conflict between the United States and China, Brexituncertainty, Italy's budget situation and the risk of anescalation in the Middle East. EUROPE: Also worrying the market was the U.S. governmentratcheting up pressure on Europe in a long-running dispute overaircraft subsidies, threatening tariffs on $4 billion ofadditional EU goods. TIN: The metal used in electronic components ended down 6.3percent at $17,700 a tonne, up from an earlier $17,585, thelowest since August 2016.Traders said a lack of liquidity on the LME market and breakbelow of $18,145, the November low, accelerated the sell-off.However, tin industry sources say some producers are losingmoney at current prices and may have to cut production.PRICES: Aluminium traded down 0.7% at $1,782 atonne, zinc gained 0.7% to $2,479, lead fell0.6% to $1,895 and nickel slid 2.1% to $12,095.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima Desai; Editing by Louise Heavens andDavid Evans)