* GRAPHIC-2019 asset returns:
* China April trade surprises - exports fall, imports grow
* Focus on U.S-China trade talks (Adds closing prices, adds Nickel outlook)By Zandi ShabalalaLONDON, May 8 (Reuters) - Copper fell to a near three-monthlow on Wednesday on concerns over a potential resumption oftit-for-tat trade tariffs between the United States and Chinaahead of last-ditch negotiations.U.S. President Donald Trump's threat to increase tariffs on$200 billion worth of Chinese goods on Friday has raised therisk of an escalation in the spat between Washington andBeijing. This could further slow the global economy, while cloudingthe outlook for demand from top metals consumer China.
The two sides will hold last-ditch talks in Washington onThursday and Friday.Benchmark copper on the London Metal Exchange ended0.5 percent lower at $6,148 a tonne, after touching its lowestsince Feb. 15 at $6,119."We are not out of the woods as yet," Saxo Bank analyst OleHansen said, adding that volatility could be higher as theworld's top economies resume talks.Hopes that the Chinese government could introduce morestimulus to cushion any softness caused by fallout from thetrade dispute supported prices, Hansen said."The market is of the belief that some kind of deal is inthe interests of both parties but if there is a complete breakdown we could see some additional weakness," he said.Meanwhile, China's April trade data painted a mixed picture,with exports shrinking unexpectedly while imports surprised withtheir first increase in five months. COPPER IMPORTS: China's unwrought copper imports rose 3.6percent in April from the previous month, according to datareleased by the General Administration of Customs on Wednesday,as demand gathered momentum at the start of the peak-consumptionsecond quarter. ALUMINIUM SMELTER: China's Henan Shenhuo Group commenced construction of an aluminium smelting project with anannual capacity of 900,000 tonnes in the southwestern provinceof Yunnan. CHILE: Copper production at Chile's top mines droppedsharply in the first quarter of 2019, Chilean copper commissionCochilco said on Tuesday due to operational issues, heavy rainsand falling ore grades at the largest deposits. NICKEL: Global demand for nickel is expected to increase to2.46 million tonnes in 2019 versus 2.33 million in 2018, theInternational Nickel Study Group said. NORSK: Norsk Hydro's Rolled Products division hasfor years failed to deliver sufficient profitability, thecompany's new chief executive told Reuters. PRICES: LME aluminium was 1 percent softer at $1,797per tonne at close, zinc eased 1.6 percent to $2,648.50,lead added 1.4 percent to $1,881.50, tin was 0.3percent higher at $19,425 and nickel was down 1 percentat $11,930.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Zandi Shabalala; editing by EmeliaSithole-Matarise, Kirsten Donovan and Alexander Smith)