* Dollar index rises on positive U.S. data
* Lead hits three-month low
* GRAPHIC-2019 asset returns: (Adds closing prices)By Eric OnstadLONDON, April 11 (Reuters) - Copper fell on Thursday on astronger dollar and worries about a global slowdown while leadtouched its lowest in more than three months on concern thatweak auto sales would dampen demand for car batteries.The decline in copper came after the European Central Bankon Wednesday highlighted threats to global growth and U.S.President Donald Trump threatened new tariffs on imports fromthe European Union. Adding to pressure on metals, the dollar climbedafter U.S. producer prices posted the biggest rise in fivemonths and weekly jobless claims fell to their lowest since1969. A stronger dollar makes metals more expensive to buyersusing other currencies. "Trading recently has been choppy," said Geordie Wilkes,head of research at Sucden Financial in London.
"It's pretty hard to have a view with conviction becausethere's still a lot of uncertainty surrounding not only thetrade war and the deal we may have, but also global growth."The vast majority of lead demand, about 80 percent, goes toproduction of batteries, mostly for vehicles."We've seen some poor automobile numbers over the past fewmonths that could be part of the issue with the lead market atthe moment," said Wilkes.Benchmark lead , the worst performer on the LondonMetal Exchange this year, slid 1.4 percent to $1,926 a tonne,its lowest since Dec. 18.
LME copper dropped 0.9 percent to close at $6,408.
* ZINC SPREAD: The premium of cash zinc over the three-monthcontract rose to $74.50 a tonne, close to the $76.75 touched twoweeks ago, its highest since early January and indicating tightsupply.
Refined zinc has been hit by shortages in LME warehouses,but many analysts expect the tightness to ease in coming monthsas rising mine output flows through to refined material.
* LARGE ZINC POSITION: Exacerbating the tight conditions,one participant was holding more than half of available LME zincinventories and short-term futures positions, LME data showed. Three-month zinc , which has gained 16 percent thisyear, finished down 0.3 percent at $2,864 a tonne.
* NICKEL SHORTAGE: Investors appeared to brush off analystforecasts of supply shortages in the global nickel market andthe electric vehicle batteries sector unless Indonesian projectsramp up quickly. LME nickel was bid down 2.3 percent to$12,930.
* U.S.-CHINA TRADE: The United States and China have largelyagreed on a mechanism to police any trade agreement they reach,including establishing new "enforcement offices", TreasurySecretary Steven Mnuchin said.
* PRICES: LME aluminium dipped 0.2 percent to $1,860a tonne after touching a one-month low of $1,854. Tin eased by 1.3 percent to $20,575, having hit its lowest sinceJan. 25 at $20,490.
* For the top stories in metals and other news, click or <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Eric OnstadEditing by John Stonestreet and Mike Harrison)