BEIJING - London copper prices edged higher in early trade on Tuesday, after U.S. Treasury Secretary Steven Mnuchin said he would meet with Chinese Vice Premier Liu He for trade talks in two weeks.

Copper, considered a bellwether for economic health, has in recent months taken its directional cues from developments in the U.S.-China trade row, which has dampened the demand outlook for industrial metals.        

FUNDAMENTALS

COPPER Three-month copper on the London Metal Exchange was up 0.3% at $5,793.50 tonne by 0214 GMT, after closing down 0.3% on Monday, when it hit a 2 1/2-week low. The most-traded November copper contract on the Shanghai Futures Exchange rose 0.3% to 47,150 yuan ($6,626.84) a tonne.

COPPER: The global refined copper market showed a 21,000 tonne deficit in June, compared with a 70,000 tonne deficit in May, the International Copper Study Group said in its latest monthly bulletin.

FIRST QUANTUM: Canada's First Quantum Minerals Ltd on Monday confirmed it was in talks with China's Jiangxi Copper Co Ltd for a potential sale of a minority interest in its Zambian copper assets.

CODELCO: Chile's state copper miner Codelco issued $2 billion worth of bonds on Monday, while offering to buy back short-term notes, as it seeks to smooth financing of a major overhaul of its ageing mines.

TRADE: U.S. President Donald Trump on Monday questioned a decision by his top trade negotiators to ask Chinese officials to delay a planned trip to U.S. farming regions after trade talks last week, saying he wanted China to buy more American farm products.

OTHER METALS: The LME complex was broadly lower, with nickel tumbling 1.4% and zinc down 0.9%. Aluminium and tin kept losses to 0.1%, while lead shed 0.4%.

STAINLESS: The ShFE will launch trading in stainless steel futures on Wednesday.

MARKETS NEWS   

U.S. stock futures gained in early Asian trade after U.S. Treasury Secretary Steven Mnuchin said U.S.-China trade talks will resume in early October while the euro struggled in the wake of dismal European manufacturing and services data.       

(Reporting by Tom Daly; Editing by Subhranshu Sahu)

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