May 20 (Reuters) - London copper prices were set on Friday for their first weekly gain in seven, as easing COVID-19 restrictions in top metals consumer China lifted expectations of a recovery in demand, while a weaker U.S. dollar lent further support.

FUNDAMENTALS

* Benchmark three-month copper on the London Metal Exchange (LME) was down 0.4% at $9,377.50 a tonne, as of 0203 GMT, after rising 2% in the previous session. The contract is up 2.4% so far this week.

* The most-active June copper contract on the Shanghai Futures Exchange rose 0.5% to 71,710 yuan ($10,655.91) a tonne.

* More Shanghai residents were given the freedom to go out to shop for groceries for the first time in nearly two months on Thursday as authorities set out more plans for exiting the city-wide COVID-19 lockdown more fully.

* The U.S. dollar headed for its worst week since early February against major peers on Friday, weighed down by a retreat in Treasury yields and fatigue after the currency's breathless 10%, 14-week surge.

* A weaker dollar makes greenback-denominated metals less expensive for buyers using other currencies.

* The U.S. Federal Reserve will lift interest rates higher by the end of this year than anticipated just a month ago, keeping alive already-significant risks of a recession, a Reuters poll of economists found.

* Peru's prime minister on Thursday failed to broker a deal with indigenous communities to allow for the restart of operations at MMG Ltd's Las Bambas copper mine, the government's fourth failed negotiation attempt.

* China cut its benchmark reference rate for mortgages by a bigger-than-expected margin at its May fixing on Friday, a second reduction this year, as Beijing is keen to revive credit demand to prop up the economy.

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MARKETS NEWS

* Asian shares jumped in early trade on Friday after China cut a key lending benchmark to support a slowing economy, but a gauge of global equities remained set for its longest weekly losing streak on record amid investor worries about sluggish growth.

PRICES

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 = 6.7296 Chinese yuan) (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)