METALS-Copper inches up on weaker dollar; investors watch US trade talks

By Hongmei Li

SINGAPORE, July 1 (Reuters) - Coppers prices on the London Metal Exchange and the Shanghai Futures Exchange inched up on Tuesday on the back of a weaker U.S. dollar, while uncertainty persisted on U.S. trade with major partners.

The LME three-month copper CMCU3 gained 0.15% to $9,883.5 per metric ton by 0103 GMT, and the SHFE most-traded copper contract SCFcv1 gained 0.1% to 79,840 yuan ($11,145.23).

"The worries on the rising U.S. government deficit has weakened the dollar, (which is) supportive to commodities, and my focus for this week will be on the U.S. trade talks," said a Beijing-based metals analyst from a futures company.

The dollar index =USD, against a basket of currencies including the yen and the euro, fell 0.35% to 96.86 on Monday, on track for its sixth straight month of losses, and set to mark its worst half-year since the 1970s.

A softer dollar makes greenback-priced commodities less expensive for buyers using other currencies.

The U.S. and China had resolved issues around shipments of Chinese rare earth minerals and magnets to the U.S. further modifying a May deal in Geneva, the U.S. Treasury Secretary Scott Bessent had said last week.

Countries could still face sharply higher tariffs on July 9 even if they are negotiating in good faith, Bessent said, adding that any potential extensions will be up to Trump.

LME nickel CMNI3 fell 0.33% to $15,165 a ton, zinc CMZN3 eased 0.31% to $2,743, and lead CMPB3 fell 0.12% to $2,042.5.

SHFE nickel SNIcv1 fell 0.65% to 120,180 yuan, zinc SZNcv1 fell 0.51% to 22,320 yuan, tin SSNcv1 dropped 0.27% to 267,410 yuan, and lead SPBcv1 ticked down 0.15% to 17,120 yuan.

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DATA/EVENTS (GMT)
0600 UK Nationwide house price mm, yy June

0750 France HCOB Manufacturing PMI June

0755 Germany HCOB Mfg PMI June

0755 Germany Unemployment Chg, Rate SA June

0800 EU HCOB Mfg Final PMI June

0830 UK S&P Global Manufacturing PMI June

0900 EU HICP X F, E, A, T Flash YY, MM June

1345 US S&P Global Mfg PMI Final June

1400 US ISM Manufacturing PMI

($1 = 7.1636 Chinese yuan)

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