METALS-London copper edges higher; strong dollar, weak US economic data cap gains

NEW DELHI, May 1 (Reuters) - London copper edged up on Thursday following comments from U.S. President Donald Trump on a potential trade deal with China, signalling de-escalation with the top metals consumer but a stronger dollar and weak U.S. growth data capped gains.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 0.5% to $9,167.5 a metric ton, as of 0228 GMT.

Trump said on Wednesday that he has "potential" trade deals with India, South Korea and Japan and a very good chance that U.S. will make a deal with China.

Meanwhile, the dollar advanced on the back of weak U.S. data to steady on Thursday, as investors focused on signs the trade war may be cooling down. USD/

A stronger dollar makes greenback-priced commodities costlier for buyers using other currencies.

Also weighing on sentiment was data showing the U.S. economy contracted in the first quarter.

The U.S. economy contracted for the first time in three years in the first quarter, swamped by a flood of imports as businesses raced to avoid higher costs from tariffs and underscoring the disruptive nature of Trump's often chaotic trade policy.

"Incoming data continues to signal an economic slowdown in the U.S. A weaker pace of hiring in the private sector and a larger-than-expected decline in GDP underscore growing recession risks," ANZ Research said.

In other London metals, aluminium CMAL3 added 0.08% to $2,401.5 a ton, zinc CMZN3 eased 0.1% to $2,589.5, lead CMPB3 gained 0.03% to $1,958, tin CMSN3 advanced 0.2% to $31,400 and nickel CMNI3 fell 0.1% to $15,400 a ton.

Mainland China market will be closed from May 1 for a five-day Labour Day holiday.

 For related news and prices, click on the codes in brackets: LME price overview      RING= COMEX copper futures  0#HG: All metals news         MTL   All commodities news      C 
 Foreign exchange rates FX=SPEED GUIDES LME/INDEX