* GRAPHIC-2019 asset returns: (Adds closing prices)By Zandi ShabalalaLONDON, July 11 (Reuters) - Copper was supported by a weakerU.S. dollar on Thursday after Federal Reserve Chairman JeromePowell raised expectations for an easing of monetary policy,although trade war tensions capped gains.Powell said on Wednesday the U.S. economy was under threatfrom a damaging trade war between Washington and Beijing,disappointing factory activity and tame inflation. Benchmark copper on the London Metal Exchange (LME)ended 0.3% higher at $5,955 per tonne, after jumping 2% in theprevious session.
"Stock markets are making new highs, bond yields aretracking lower and the dollar, most importantly, looks weakeragain and that has helped copper recover to the current levels,"said Ole Hansen, Saxo Bank's head of commodity strategy.He said copper, which is used in power and construction, hadsettled into a range of between $5,800 and $6,100 per tonne, asthe dollar's retreat made greenback-priced metals cheaper forholders of other currencies.But gains were capped as investors eyed forecasts for slowergrowth in China, with vehicle sales potentially falling in 2019.A Reuters poll showed economists expect economic growth toweaken to a near 30-year low of 6.2% this year.NICKEL STOCKS: Headline LME inventories of nickel hit their lowest since Feb. 2013 at 153,612tonnes. But the LME cash nickel contract stood at a $62 pertonne discount to the three-month, indicating ample supply.LEAD: The difference between LME cash and three-month leadcontracts flipped to a premium of $10.50 a tonne onWednesday after holding in the discount zone for nearly a month,indicating a nearby supply shortage.STOCKS: On-warrant stocks of lead climbed14,375 tonnes or 39% to 51,025 tonnes after falling to theirlowest since 2008 on Tuesday."Lead smelters are all losing money, so prices should rise.Lead consumption now is not very good, but it will be better.The third and fourth quarters are the peak season for lead-acidbattery consumption" a China-based lead sales manager said.
Benchmark lead rose 0.5% to $1,972.50 per tonne, inits fourth straight session of gains, after touching its highestsince April.TIN: The tin market is under greater pressure from aneconomic slowdown and falling demand than supply issues, wherelower production from countries such as Myanmar is likely to beoffset by a new project in central Africa. Three-month tin on the LME gained 0.8% to $18,345per tonne.PRICES: Aluminium closed down 1.2% to $1,825 atonne, zinc firmed 1.1% to $2,428 and nickel touched its highest since April and closed 1.1% higher at$13,130.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Zandi Shabalala;Editing by Kirsten Donovan and Edmund Blair)