(Updates with closing prices)By Pratima DesaiLONDON, Nov 6 (Reuters) - Copper prices fell on Tuesday asthe market waited for the result of the U.S. midterm electionsand a monetary policy meeting of the U.S. Federal Reserve laterthis week.Benchmark copper on the London Metal Exchange closeddown 0.5 percent at $6,158 a tonne.
Aside from a brief dip below $6,000 a tonne last week,copper has been wedged in a trading range between around $6,100and $6,350 a tonne since late September.
"The market is waiting for developments in the UnitedStates, the election today and the Fed meeting. We're notexpecting a rate rise this month, but we may get clues aboutDecember," said Capital Economics analyst Ross Strachan."We're bearish in the short term on metals because of China,where there is a significant growth slowdown and where stimuluswill take a while to feed through. We expect China to takefurther easing measures over coming months."
ELECTION: Markets are closely watching the U.S. midtermCongressional elections, as policy decisions that could sway theeconomy, corporate decision-making and consumer spending hingeon the results. FED: The U.S. Federal Reserve meets Wednesday and Thursdayand again on Dec. 18-19 when there will be a news conference.Many expect higher U.S. rates in December. That would boostthe U.S. currency and make dollar-denominated commodities moreexpensive for holders of other currencies. SUPPORT: Industrial metals gleaned some support from aChinese official saying Beijing was ready to work with theUnited States to resolve trade disputes between the world's twolargest economies. "We are expecting China and the United States to starttalks," INTL FCStone analyst Edward Meir said in a note."However, we are under no illusions that the discussionswill ultimately be successful as the points in dispute are socontentious, they may be beyond fixing."CHINA: New bank loans rebounded in September after dippingin the two previous months, but overall credit conditions stayedtight in an economy chilled by an ongoing tariff war with theUnited States. Export orders to the United States signed at China's largesttrade fair dropped 30.3 percent on the year, its organiser said. POSITIONS: A large position holding between 50 and 79percent of zinc stocks in LME approved warehouses have fuelledconcern about nearby zinc supplies on the LME market.
This can be seen on the premium for the cash over thethree-month contract at around $40 a tonne . Thepremium is down from the three-month high of $64 a tonne seenlast week, but that compares with a discount only a few weeksago.Three-month zinc ended down 0.8 percent at $2,501 atonne.PRICES: Aluminium fell 1.2 percent to $1,951 atonne, lead closed down 1.3 percent at $1,909, tin slipped 0.1 percent to $19,050 and nickel gained0.2 percent to $11,775.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima DesaiAdditional reporting by Peter HobsonEditing by Edmund Blair and David Evans)