• Copper prices fell on Wednesday as concern about economic growth and demand dominated sentiment, but rising hopes for a solution to a prolonged trade dispute between China and the United States limited losses.
• Markets are also focused on the outcome of a two-day meeting of the U.S. Federal Reserve due later on Wednesday.
• Markets will scrutinise its policy statement and Fed Chair Jerome Powell's comments at a news conference.

Benchmark copper on the London Metal Exchange was down 0.4% at $5,798 a tonne at 0933 GMT. Prices of the metal used widely in the power and construction industries hit a 1-1/2-month high of $5,980 last week.

"Base metals will struggle for a while longer, but we are getting to the point where people will start favouring risk again," said Dan Smith, analyst at Oxford Economics.

Smith added that the U.S. presidential election next year would be a catalyst "for Donald Trump to try and calm things down on the trade front".

Markets are also focused on the outcome of a two-day meeting of the U.S. Federal Reserve due later on Wednesday.

FED: Despite divisions about whether a reduction in borrowing costs is needed, the Fed is widely expected on Wednesday to cut interest rates by a quarter of a percentage point for the second time this year.

Markets will scrutinise its policy statement and Fed Chair Jerome Powell's comments at a news conference.

"With the Fed rate decision tonight followed by Bank of Japan tomorrow, central bank easing measures may be viewed as slightly supportive," analysts at Marex Spectron said in a note.

TRADE: Donald Trump said on Tuesday his administration could seal a deal on trade with China before the U.S. presidential election, or an agreement could be reached the day after U.S. voters go to the polls.

Trump's comments come two days before U.S. and Chinese deputy trade negotiators are due to meet in Washington for the first in-person meetings in nearly two months.

CHINA: Weaker manufacturing activity in China has hit prices of industrial metals. It accounts for nearly half of global consumption of metals such as copper.

However, analysts expect to see a growth recovery over the next few months as Chinese authorities cut rates and provide further stimulus to boost economic activity.

NICKEL: Easing worries about the availability of the steel-making ingredient has seen the premium for the cash over the three-month contract fall back to $93 a tonne <MNI0-3> from $163 last week, the highest since April 2009.

Contributing to that are rising stocks of nickel in LME registered warehouses <MNISTX-TOTAL>, which at 161,538 tonnes are up 10% since early August.

Three-month nickel gained 0.9% to $17,180 a tonne.

PRICES: Aluminium was down 0.4% at $1,784 a tonne, zinc lost 1.1% to $2,323, lead gained 0.6% to $2,067 and tin slipped 0.2% to $16,825 a tonne.