* GRAPHIC-2019 asset returns:
* First copper resistance at $6,070/T (Adds comment, closing prices)By Pratima DesaiLONDON, June 26 (Reuters) - Copper prices hit five-weekhighs on Wednesday after U.S. Treasury Secretary Steve Mnuchinsaid a U.S.-China trade deal was 90% complete, but gains werecapped by concern about demand in top consumer China. Benchmark copper on the London Metal Exchange closeddown 0.9% at $5,988 a tonne. Prices of the metal used widely inthe power and construction industries earlier touched $6,063.50,the highest since May 21."There is a lot of volatility, copper is being led by themacro environment, the U.S.-China trade war and its potentialimpact," said BMO Capital Markets analyst Kash Kamal."Macro headwinds are very real, the environment is veryuncertain and investors are watching key indicators of demandsuch as industrial production in China."
TRADE: U.S. President Donald Trump and his Chinesecounterpart Xi Jinping will meet this week at the G20 summit inJapan hoping to calm their 11-month trade war."With this week's G20 and Citi's view of at least atruce/handshake, along with expectations of new stimuli fromChina's Politburo meeting next month, we are bullish copper,"Citi analysts said in a note.CHINA: Earlier this month, China's economy flashed warningsigns as industrial output growth in May unexpectedly slowed toa more than 17-year low and investment cooled. Demand for basemetals is highly correlated with industrial output. China accounts for nearly half of global consumption ofindustrial metals, while the United States consumes nearly 10%.STIMULUS: China will roll out more measures to cut financingcosts for smaller companies, state television reported onWednesday, citing the cabinet, amid expectations of additionalstimulus by Beijing to boost growth. DOLLAR: A firmer U.S. currency making dollar-denominatedmetals more expensive for importers in other currencies was alsoweighing on prices. This is a relationship used by funds togenerate buy and sell signals using numerical models.CHILE: Labour unions at Chile's Chuquicamata copper minevoted on Saturday to reject the latest contract offer ofgovernment-controlled mining company Codelco, and to continuethe week-long strike at the site. "A prolonged strike would be bullish for copper, but demandrisk is still a concern," analysts at Jefferies said in a note.TECHNICALS: First upside resistance for copper is at $6,070,a Fibonacci retracement level. This is followed by $6,100, wherethe 50-day moving average currently sits.PRICES: Aluminium ended up 0.3% at $1,820, zinc was 1.5% lower at $2,506, lead fell 0.5% at$1,929, tin slipped 1.4% to $18,780 and nickel gained 1.5% to $12,490 a tonne. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima Desai; Editing by Mark Potter and SusanFenton)