* GRAPHIC-2019 asset returns: (Updates with closing prices, comments on China talks) By Eric Onstad LONDON, Sept 6 (Reuters) - Copper failed to respondpositively on Friday to China boosting bank lending because thetrade dispute between the biggest metals consumer and the UnitedStates still weighed on the market.
China's central bank said it was cutting the amount of cashthat banks must hold as reserves for the third time this year,releasing 900 billion yuan ($126 billion) in liquidity to shoreup the slowing economy. The central bank, however, said there would be "noflood-like stimulus". "It comes on top of the last couple of days, where we sawthe market recover quite strongly. It raises the question of howmuch further the market can rally at this stage while the tradewar is still on," said Ole Hansen, head of commodity strategy atSaxo Bank in Copenhagen. "Some additional stimulus measures had been expected, so Ithink that's probably adding to the lack of reaction."
Copper rebounded from a two-year low hit on Tuesday afterthe United States and China agreed to hold further trade talksto resolve a dispute that has weakened global growth and metalsconsumption. On Friday, a White House adviser said talks between U.S. andChinese trade negotiators could "heat up" during meetings inOctober. Benchmark copper on the London Metal Exchangeslipped 0.2% to $5,834 a tonne in final open outcry trading.
* COPPER TECHNICALS: Copper failed to break through its50-day moving average at $5,841 this week, prompting speculatorsto hold back. "The downside pressure is not over, the downside risks arestill concrete," said Gianclaudio Torlizzi, partner atconsultancy T-Commodity in Milan. "Some shorts have covered, butnot any big positions yet." A break above the 50-day moving average would signal thatthe market was stabilising and may be poised for a new wavehigher, he added.
* TIN: LME tin fell 0.4% to end at $17,375 a tonne,reversing after recent strong gains spurred by production cutsby some of the world's top refined tin producers following arecent slump in prices. Tin gained nearly 6% this week, its biggest weekly increasesince March 2016. * NICKEL: LME nickel rose 1.1% to finish at $17,685.The net speculative long position on the LME reached 43% of openinterest as of Wednesday's close, the highest since September2017 when it peaked at 47%, Alastair Munro at broker MarexSpectron said in a note.
* ZINC STOCKS: LME zinc inventories fell to 65,625 tonnes,the lowest since April 12, daily data showed on Friday.
* PRICES: LME zinc fell 0.6% to close at $2,328 atonne, aluminium added 0.4% to $1,790.50 and lead gained 1.1% to $2,078. * For the top stories in metals and other news, click or (Additional reporting by Mai Nguyen in Singapore; Editing byDale Hudson and Louise Heavens)
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