* GRAPHIC-2019 asset returns: (Updates with closing prices) By Eric Onstad LONDON, Nov 22 (Reuters) - Copper rebounded on Friday aftercomments by the U.S. and Chinese presidents raised hopes thatthe two countries will forge a trade deal. Donald Trump said on Friday that a trade deal with China is"potentially very close" while Xi Jinping said that China wantsto work out an initial trade pact with the United States and hasbeen trying to avoid a trade war. "With the latest soothing comments and invitation forfurther talks, the market is once again erring on the side ofbelieving that a trade deal can still be struck," said OleHansen, head of commodity strategy at Saxo Bank in Copenhagen. "We remain pretty sceptical about the potential impact of adeal. If it doesn't really deliver on all counts, then we couldsee some more weakness." Three-month copper on the London Metal Exchange rose 0.5% to $5,855 a tonne in final open-outcry trading afterclosing 0.8% down in the previous session. A key level to watch was $5,800, which if broken would openthe way for losses to $5,600, the bottom of the recent range,Hansen added. Market sentiment had soured this week on fears of a furtherdelay in the signing of a "phase one" deal after two U.S. billsbacking protesters in Chinese-ruled Hong Kong added to concernsthat Sino-U.S. talks could flounder.
* LME COPPER STOCKS: LME copper inventories fell to 218,925 tonnes, the lowest since June 10, data showed onFriday. * ALUMINIUM SPREAD: The premium of LME cash aluminium overthe three-month contract rose to $13.50 a tonne, itshighest since Dec. 31 last year. That compares with a discountof $33.25 in mid-September. The rising premium indicatestightness in near-term supplies in the LME system. NICKEL DEFICIT: The global nickel market deficit widened to3,200 tonnes in September from a revised shortfall of 300 tonnesthe previous month, the International Nickel Study Group said. NICKEL POSITION: The net speculative long position of LMEnickel has declined to 2.9% of open interest, the lowest sinceJuly, according to estimates by broker Marex Spectron. LME nickel , untraded in closing rings, was bid up0.7% to $14,580 after earlier probing below the 200-day movingaverage at $14,265. "That is the potential line in the sand thatsome traders are looking for after the near 25% drop sinceSeptember," Hansen said. PRICES: Aluminium rose 0.3% to close at $1,739 atonne while zinc added 0.5% to $2,305 after touching aone-month low of $2,283. Lead gained 0.4% to finish at $1,966 and tin shed 0.5% at $16,350. (Additional reporting by Enrico dela Cruz in ManilaEditing by David Goodman and Louise Heavens)
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