(Updates with closing prices)By Peter HobsonLONDON, June 7 (Reuters) - Copper prices were set for theireighth straight weekly fall after trade disputes, signs ofslowing global economic growth and disappointing U.S. jobs dataweakened the demand outlook for metals.Benchmark copper on the London Metal Exchange (LME)traded down 0.2% at $5,799 a tonne in closing rings, down 0.5%this week.
Copper has fallen by about 14% from an April high of$6,608.50 after hopes of a quick U.S.-China trade deal faded andU.S. President Donald Trump threatened tariffs on Mexican goods.A run of poor economic data continued on Friday with figuresshowing a sharp slowdown in U.S. jobs growth. An increase in risk appetite among investors this week haslifted global stock markets from recent lows and helped tosupport copper prices, said Saxo Bank analyst Ole Hansen. "But we are not out of the woods yet," he said. "We need tosee data reducing recession fears or implying lower supply (ofcopper). Until we see that, copper is likely to struggle."
CHINA HOLIDAY: Volumes were subdued, with Chinese marketsclosed for the Dragon Boat Festival.TRADE WAR: President Trump said he would decide whether toimpose tariffs on at least $300 billion of Chinese goods after ameeting of G20 nations later this month. Washington has, however, granted Chinese exporters two moreweeks before imposing a set of previously announced tariffs. MEXICO: U.S.-Mexico talks were set to resume on Friday asMexican officials push to avert U.S. tariffs due to take effectnext week.CHINA STIMULUS: China, the largest consumer of metals,announced measures to revive slumping car sales. The governor ofits central bank said there was "tremendous" room to makeadjustments if the China-U.S. trade war worsens.GERMANY: Industrial output and exports fell sharply inApril. DOLLAR: The dollar was heading for its biggest weekly fallsince February 2018, helping metals by making them cheaper forbuyers with other currencies.POSITIONING: Speculators' net short position in LME copperhas expanded to 9.8% of active contracts - the largest sinceSeptember, according to broker Marex Spectron.
CODELCO: Unions at Chile's huge Chuquicamata copper mineagreed to extend negotiations with operator Codelco in the hopeof averting a strike. LEAD: LME lead closed down 3.1% at $1,832 a tonnebut was up about 1.5% on the week after a major smelter haltedproduction and declared force majeure. LEAD SPREAD/STOCKS: The premium for cash lead over thethree-month contract fell to $11 from a more thantwo-year high of $39 earlier this week. A premium suggests tightnearby supply. OTHER METALS: LME aluminium finished down 0.7% at$1,764 a tonne, zinc closed 0.7% lower at $2,484 and tin slipped 0.1% to $19,225.
Nickel was not included in closing rings but wasdown 0.5% at $11,620 in electronic trading.
All but tin were down this week.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter HobsonAdditional reporting by Mai NguyenEditing by David Goodman and Louise Heavens)