* Copper has lost 7% this month
* Copper inventories on the decline
* Upside resistance seen at $6,000 -technicals
(Updates with closing prices)By Pratima DesaiLONDON, May 28 (Reuters) - Copper prices rose on Tuesdayalongside Chinese equities, supported by expectations of furthereconomic stimulus in the world's biggest consumer, thoughsentiment remained fragile because of the U.S.-China tradedispute.Benchmark copper on the London Metal Exchange endedup 0.1% at $5,960 a tonne. Prices of the metal used in power andconstruction are down about 7% this month."The sell-off throughout most of May has very much beendriven by weak sentiment, mostly hinging on the U.S-China tradewar," said BMO Capital Markets analyst Kash Kamal."The exchange price isn't really reflecting the tightfundamentals for both refined metal and concentrates, and LMEstocks have been drifting down through May."STIMULUS: An escalation of trade tensions between China andthe United States could trigger further monetary and fiscaleasing by Chinese authorities to support growth. China accounts for nearly half of global demand forindustrial metals.Base metals markets are looking ahead to Chinesemanufacturing PMIs, particularly for new orders and exportcomponents, to gauge demand prospects over the coming months.EQUITIES: Chinese shares closed higher on Tuesday, partlybecause of a leading regulatory official downplaying the impactof the trade war. DEFICIT: The copper market is expected to have a 205,550tonne deficit this year and 172,000 tonnes in 2020, according tothe average forecast in a recent Reuters survey. According to the International Copper Study Group thedeficit last year was 387,000 tonnes. INVENTORIES: Stocks of copper in LME-approved warehouses -at 185,575 tonnes - have fallen nearly 20% since May 7. Those inwarehouses monitored by the Shanghai Futures Exchange - at172,266 tonnes - are down 35% since March 17. TECHNICALS: Upside resistance for copper stand at $6,000,followed by a Fibonacci retracement level of $6,503.ZINC: Large holdings of LME zinc warrants and historicallylow LME stocks have fuelled worries about a tight LME market.This is illustrated by the premium for cash zinc over thethree-month contract. The premium closed at $161 a tonne onFriday, its highest since September 1997. Three-month zinc closed up 0.1% higher at $2,562.PRICES: Aluminium rose 0.4% to $1,807, lead was unchanged at $1,825, tin was down 0.5% at $19,200and nickel was trading 1.9% lower at $12,115 inelectronic trading.CHINA FUTURES: SHFE is exploring ways to open up itsnon-ferrous metals futures contracts to foreign investors andhas a rough timeline to give access within two years, itschairman said on Tuesday. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima Desai; editing by David Goodman and EdOsmond)