METALS-London copper gains; firm dollar, soft US growth data cap rise

NEW DELHI, May 1 (Reuters) - London copper edged up on Thursday after U.S. President Donald Trump hinted at a potential trade deal with China, signalling a 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) rose 0.4% to $9,161.5 a metric ton as of 0611 GMT.

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

Meanwhile, the dollar advanced on Thursday on the back of weak U.S. data and as investors focused on signs that the trade war may be easing. USD/

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

However, data showing the U.S. economy contracted for the first time in three years in the first quarter, due to a flood of imports as businesses raced to avoid higher costs from tariffs, dampened sentiment.

The decline also underscored 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 fell 0.1% to $2,397 a ton, zinc CMZN3 rose 0.08% to $2,594.5, lead CMPB3 lost 0.15% to $1,954.5, tin CMSN3 eased 0.2% to $31,300 and nickel CMNI3 shed 0.6% to $15,330 a ton.

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

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