* GRAPHIC-2019 asset returns:
* Zinc hovering near 6-month low
* Copper stocks in LME-approved warehouses fall (Releads, updates with dollar, closing prices)By Pratima DesaiLONDON, July 8 (Reuters) - Copper prices slipped on Mondayas sentiment was dominated by the protracted U.S.-China tradedispute and subsequent damage to global growth and demand, and astronger dollar.Benchmark copper on the London Metal Exchange endeddown 0.2% at $5,892 a tonne."The resolution, or otherwise, of the trade talks betweenthe United States and China are of meaningful importance to basemetals markets," said Guy Wolf, head of market analytics atMarex Spectron."Underlying physical markets are significantly more robustthan the headlines would suggest they have any right to be.
That is not to suggest things are booming, nor are they lookingas tight as they perhaps were earlier in the year."
REVERSAL: Traders said a break of the 21-day moving averageat $5,925 triggered stop levels, which earlier in the sessiontook prices to a session high at $5,946.50.Reinforcing this was a drop in copper stocks in LME warehouses, which fell 4,675 tonnes to 298,300 tonnes.
Funds and dealers trading headline stocks had taken bets onlower prices after LME copper inventories last week rose above300,000 tonnes from 239,925 tonnes.
TRADE: The United States and China agreed late in June torestart trade talks after President Donald Trump offeredconcessions including no new tariffs and an easing ofrestrictions on tech company Huawei. The Trump administration has accused China of engaging inunfair trade practices that discriminate against U.S. firms,forced technology transfers and intellectual property rightstheft, all charges Beijing has denied.
CHINA: Chinese industry accounts for about half of globalconsumption of industrial metals. Markets are looking ahead toChina data on bank loans.New bank loans in China are expected to have picked up to afive-month high in June, a Reuters poll showed, as Beijing keptample liquidity in the financial system to support the slowingeconomy. DOLLAR: A higher U.S. currency makes dollar-denominatedmetals more expensive for importers in other currencies, whichpotentially could subdue demand. ZINC: Prices of the metal used to galvanise steel haverecently come under pressure from expectations of rising supplyand the likelihood of a second half balanced market or surplus.Zinc was down 1.2% at $2,378 a tonne, a six-monthlow.
Receding worries about zinc shortages on the LME market canalso be seen in the discount for the cash over the three-month contract, which is around $2.60 a tonne, against apremium of more than $160 a tonne late May.PRICES: Aluminium gained 0.3% to $1,809, lead gained 0.8% to $1,884, tin added 0.7% to $18,490and nickel was up 1.9% to $12,720 a tonne.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS LME cash-three month zinc spread flips to discounts ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima Desai; Editing by Jan Harvey andAlexander Smith)