* Mnuchin reportedly discussed lifting tariffs on China
* Nickel hits two-month peak, zinc at month high (Add more quotes, updates with closing prices)By Maytaal AngelLONDON, Jan 18 (Reuters) - LME copper, nickel and zinc hitmulti-week highs on Friday as base metals gained on signs thetrade dispute between the United States and top metals consumerChina could be easing.
The Wall Street Journal reported on Thursday that U.S.Treasury Secretary Steven Mnuchin discussed lifting some or alltariffs imposed on Chinese imports.
The Treasury later denied the talks, but the report hascontinued to lift global markets, including metals."Macro headlines are moving copper. The fundamentals don'tgive you anything meaningful in terms of a price trend. Themarket is not so tight that it forces prices higher, and it'snot oversupplied either," said Macquarie analyst Vivienne Lloyd."Copper will remain range-bound until it finds a big macrotrigger, and we lean towards an upside move."
* COPPER: Three-month copper on the London Metal Exchange gained 1 percent to $6,052 a tonne in closing openoutcry trading, having hit $6,071, its highest since Dec. 28.The metal racked up its biggest weekly gain in nine.
* ZINC: Zinc ended up 1.3 percent at $2,580, havinghit $2,595, its highest since Dec. 13. The metal notched up aweekly gain of 3.6 percent, its biggest since the week endedSept. 28.
* ZINC STOCKS: "The increase in zinc ingot stocks at homeand abroad is less than expected, supporting prices," Chinesebrokerage Industrial Futures said in a note.
* ZINC TECHNICALS: Zinc on Thursday broke above its 100-daymoving average and a one-year daily descending trend, St?(C)phanieAymes, head of technical analysis at Societe Generale, said in anote. "Zinc could extend the recovery towards the graphicallevels of $2,643 in short term with the next hurdle at the200-day moving average at $2,696."
* TIN POSITIONS: Indicating potential supply tightness intin, LME data shows large holdings of tin warrants and cashcontracts.
* RUSAL: The U.S. House of Representatives backedlegislation to keep sanctions on companies including Rusal, theworld's largest aluminium producer outside China, but the Trumpadministration is expected to lift them as soon as Friday.
* GLOBAL MARKETS: Major stock indexes rose worldwide, withWall Street set for a fourth week of gains, boosted by optimismthat the trade conflict between the United States and China maycome to an end.
* OTHER METALS: Nickel gained 2 percent to close at$11,820, the highest since Nov. 7, aluminium finished0.7 percent firmer at $1,870, lead climbed 1.8 percentto $1,998 and tin , untraded in closing rings, was bid up0.1 percent to $20,600.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly in Beijing and Eric Onstad inLondon; Editing by David Evans and Mark Potter)