* LME copper stocks rise from decade low
* Cash to 3-month spread falls sharply
* Dollar strengthens after ECB policy change
* Nickel falls more than 3 percent (Updates with closing prices)By Peter HobsonLONDON, March 7 (Reuters) - Copper prices fell on Thursdayas rising stockpiles and a drop in the premium for directlyavailable metal signalled a supply squeeze on the London MetalExchange may be easing.
Most other base metals also slipped after the EuropeanCentral Bank delayed interest rate rises to 2020 and promisedcheap loans, pushing the euro lower and the dollar higher, andmaking metals more expensive for buyers with other currencies. Benchmark copper on the LME closed down 0.7 percentat $6,423.50 a tonne, drifting further away from a 6-1/2-monthhigh of $6,540 reached on Feb. 25.
Optimism over the ability of a potential U.S.-China tradedeal and Chinese economic stimulus to push prices higher wasalso fading, said Capital Economics analyst Ross Strachan.
Stimulus measures announced this week in China, the largestmetals consumer, were "not a game changer" and would not stopgrowth there from slowing, he said.
Copper's more than 10 percent rise from a January low alsoshowed traders had priced in the possibility of a trade deal, hesaid, predicting copper would end the year at $6,250 a tonne.
COPPER STOCKS: Inventories in LME-registered warehouses roseto 120,075 tonnes from 116,872 tonnes on Wednesday, the lowestsince 2008. SPREAD: The premium for cash copper over the three-month
contract tumbled to around $27 from a four-year high of$70 on Tuesday, with traders and analysts saying they expectedmore deliveries into LME warehouses.
POSITIONING: Speculators had by Monday cut their net longposition in LME copper to 12 percent of open contracts from 13.5percent last week, brokers at Marex Spectron said.
CHINA STOCKS/PREMIUMS: China's copper market looks lesstight than the LME. Stocks in Shanghai Futures Exchangewarehouses have risen sharply during a seasonalmanufacturing lull and import premiums at $52.5 are the lowestin nearly two years. CHINA STIMULUS: Chinese Finance Minister Liu Kun said onThursday a proactive fiscal policy does not mean China will openthe flood-gates for stimulus. China announced measures tosupport growth on Tuesday.GRAPHIC: The impact of Chinese stimulus is due to take sixto nine months to flow through to demand for industrial metals. TRADE TALKS: U.S. President Donald Trump said trade talkswith China were moving along well. RUSAL: Rusal , the world's largest aluminiumproducer outside China, said its sales were gradually returningto normal after U.S. sanctions on the company were lifted inJanuary. NICKEL: LME nickel closed 2.5 percent lower at$13,240 a tonne as investors took profits after prices surged 13percent since mid-February, analysts said.
OTHER METALS: Aluminium ended down 0.1 percent at$1,864 a tonne, zinc fell 1.9 percent to $2,735.50,
lead added 0.5 percent to $2,105 and tin rose0.4 percent to $21,475.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly; Editing by Jan Harvey andDavid Evans)