* Copper touches highest since May 21
* GRAPHIC-2019 asset returns: (Updates with closing prices)By Eric OnstadLONDON, June 20 (Reuters) - Nickel and other base metalsmarched higher on Thursday after the U.S. central bank signalledrate cuts and investors hoped that the economy of top metalsconsumer China would recover.Both nickel and copper touched the highest levels in morethan three weeks, partly fuelled by speculators buying backbearish positions, traders said.Metals got impetus after the U.S. Federal Reserve onWednesday said the case for lower rates was building, pointingto an easing of monetary policy as early as next month. Industrial metals were showing signs that they might extendthe gains, but needed more good news, said Gianclaudio Torlizzi,a partner at consultancy T-Commodity in Milan."I'll remain with a cautious stance as long as base metalsstay below their 200-day moving averages, which are thewatershed levels," he said.
Nickel was the only metal on the London Metal Exchange thathad breached that level, regarded as key by investors who usechart signals to guide their positions, he said."We need some more news to really turn bullish. We stillhave to see that the Chinese economy has really bottomed and isrecovering," Torlizzi added.Three-month nickel , the top gainer on the LME,climbed 1.7% to $12,300 a tonne in closing open outcry trading,the highest since May 28.
* NICKEL BALANCE: In the first four months of the year, the global nickel deficit narrowed to 27,200 tonnes from a deficitof 59,400 tonnes in the same period of 2018, data showed.
* COPPER STRIKE: LME copper gained 0.9% to end at$5,973 a tonne, having touched $6,027, the strongest since May21, after unions at Chile's Chuquicamata mine called on membersto reject a sweetened contract offer from Codelco, the world'slargest copper producer.
* ALUMINIUM OUTPUT: Global primary aluminium output rose to5.438 million tonnes in May from a revised 5.222 million tonnesin April, data showed.
* DOLLAR: Metals got a boost after the dollar index sank and was on track for its biggest two-day drop this yearfollowing the Fed announcement, making dollar-denominated metalscheaper for holders of other currencies.
* TIN STOCKS/SPREADS: Tin spreads have eased after a bigbuild-up in LME inventories , which have soaredsevenfold over the past six weeks.
The premium of cash tin over the three-month contract hasslid to $55 a tonne, the lowest since April and down from a peakof $320 on May 23.
* PRICES: LME aluminium finished down 0.1% at $1,781a tonne after touching $1,807.50, the strongest since May 31,zinc shed 0.4% to $2,468, lead added 0.5% to$1,903 and tin , untraded in closing rings, was bid uprose 1.3% to $19,150.
* For the top stories in metals and other news, click or <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Eric Onstad; Editing by David Evans, ElaineHardcastle and Jan Harvey)