* Tin slides to six-month low after breaking key support
* LME/ShFE arb: bit.ly/2wZSAEz
* GRAPHIC-2017 asset returns: tmsnrt.rs/2jvdmXl (Updates with closing prices)
By Jan Harvey
LONDON, Dec 13 (Reuters) - Copper rose on Wednesday as prices extended a correction from last week’s sharp fall, but moves were muted ahead of an expected interest rate increase from the U.S. Federal Reserve.
Global shares reached another record high as the Fed geared up to raise rates for the third time this year. However, the U.S. dollar weakened after consumer price data showed sluggish inflation, adding to concerns the bank will be less able to execute multiple rate increases next year.
Copper plunged 4 percent on Dec. 5, its biggest one-day drop in two years. It has since recovered some but not all of those losses.
Some upbeat data out of China last week has helped allay concerns over Chinese demand, Julius Baer analyst Carsten Menke said, while moves on Comex had also improved the technical picture for the metal.
“Usually after such a steep slide, you have some bargain hunters coming back into the market, causing a bit of a counter move, and I think that is what we’re seeing right now,” he said. “But in my view, it should reverse sooner rather than later, because fundamentally it does not look that strong.”
Tin slid to a six-month low after breaking through key chart support, meanwhile.
* LME COPPER: London Metal Exchange copper ended the day up 1 percent at $6,729 a tonne.
* COPPER TECHNICALS: LME copper may rise to $6,737 a tonne after breaking above resistance at $6,670, Reuters technical analyst Wang Tao said. The metal has broken a falling trendline which signals a further gain from current levels.
* U.S. INTEREST RATES: The Federal Reserve is widely expected to raise interest rates on Wednesday and may give its strongest hint yet on how the Trump administration’s tax overhaul could affect the U.S. economy.
* TIN: LME tin prices fell for a second day, breaking through their late October low at $19,020 to hit their weakest since early June at $18,685 a tonne. Tin closed down 1.9 percent at $18,800 a tonne.
* ZINC, LEAD: LME zinc ended down 0.1 percent at $3,153 a tonne, while lead finished 0.3 percent higher at $2,525.
* SUPPLY: The global zinc market deficit widened to 36,900 tonnes in October, while the lead deficit shrank to 10,000 tonnes, data showed.
* ZINC: Miner and trader Glencore said next year’s zinc production would be roughly steady at just over one million tonnes, although it will start to ramp up some capacity.
* OTHER METALS: LME aluminium ended 0.3 percent lower at $2,009 a tonne, while nickel finished the day 0.3 percent higher at $11,095 a tonne.
Additional reporting by Peter Hobson in London and Melanie Burton in Melbourne, editing by Gareth Jones and David Evans