METALS-London metals mixed ahead of US-China trade talks

SHANGHAI, May 8 (Reuters) - Metal prices in London were mixed on Thursday ahead of the U.S.-China trade talks this weekend, following the Federal Reserve's warning that increasing inflation and labour market risks could fuel economic uncertainty.

Benchmark copper CMCU3 on the London Metal Exchange (LME) fell 0.3% to $9,391 a metric ton as of 0720 GMT. Earlier during Asian trading hours, it reached its lowest level since May 2, at $9,360.

On Wednesday, the Fed kept interest rates unchanged, acknowledging that risks of higher inflation and unemployment had risen, further clouding the U.S. economic outlook amid the effects of President Donald Trump's tariffs.

Fed Chair Jerome Powell said it isn't clear if the economy will continue its steady pace of growth or wilt under mounting uncertainty and a possible spike in inflation.

Meanwhile, the Trump administration will announce a trade deal on Thursday with the United Kingdom, the New York Times reported late on Wednesday.

At the same time, traders adopted a cautious stance ahead of the scheduled U.S.-China meeting in Switzerland this weekend, after months of escalating tensions that pushed tariffs between the world's two largest economies well beyond 100%.

The two countries are expected to discuss easing broader tariffs and duties on specific products.

"We're all waiting for any news or updates from the U.S. and China trade talks. Until we hear more, it's hard to see where markets are headed," a trader said.

Among other London metals, aluminium CMAL3 added 0.3% to $2,390 a ton, zinc CMZN3 was flat at $2,618, lead CMPB3 slid 0.6% to $1,945, tin CMSN3 gained 0.2% to $31,705 and nickel CMNI3 was flat at $15,545 a ton.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) fell 0.9% to 77,330 yuan ($10,760.89) per ton.

SHFE aluminium SAFcv1 lost 0.7% to 19,510 yuan a ton, zinc SZNcv1 lost 0.8% to 22,175 yuan, lead SPBcv1 gained 0.2% to 16,775 yuan, nickel SNIcv1 lost 0.4% to 124，630 yuan and tin SSNcv1 slid 0.2% to 261,480 yuan.

($1 = 7.2336 Chinese yuan renminbi)

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