* Copper falls as stronger dollar weighs on commodities
* Talk of economic stimulus in top consumer China limits losses (Updates prices)
By Naveen Thukral
SINGAPORE, July 18 (Reuters) - London copper fell for a second consecutive session on Monday, with a firmer dollar weighing on prices, although expectations of economic stimulus in top consumer China kept a floor under the market.
The U.S. dollar gained on the yen as investors unwound safe-haven trades in the wake of the failed coup in Turkey, while a giant takeover bid in the tech sector and the promise of central bank stimulus lent support to equities.
Three-month copper on the London Metal Exchange slid 0.8 percent to $4,879.50 a tonne by 0718 GMT. The most-traded copper contract on the Shanghai Futures Exchange closed 1.5 percent down at 37,850 yuan ($5,650.86) a tonne.
“The price action today is more to do with investors taking profit and a stronger dollar weighing on prices,” said Chunlan Li, an analyst at CRU in Beijing. “There is not much change in the fundamental situation, it is summer season and demand seasonally low.”
A firmer dollar weighs on commodities priced in the U.S. currency, making them more expensive for buyers using other currencies.
China’s economy expanded slightly faster than expected in the second quarter, but private investment growth shrank to a record low, suggesting future weakness which could pressure the government to roll out more support measures.
A seasonal slowdown in China’s demand for copper is adding pressure on prices with inventories rising.
Copper stocks in warehouses monitored by the Shanghai Futures Exchange jumped 9.3 percent, data showed last week, a possible indication of weak demand or oversupply.
Still, there was some support for copper after choppy seas off Chile caused widespread delays to shipments from the world’s top producer in the second half of June.
In news, Japanese aluminium products makers such as UACJ Corp and Kobe Steel are boosting output capacity in the United States in a bid to snare market share as automakers turn to the lighter metal to meet stricter environmental rules.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin ($1 = 6.6981 Chinese yuan) (Reporting by Naveen Thukral; Editing by Ed Davies)