SYDNEY, April 5 (Reuters) - London metals edged higher on Thursday as the global market mood lifted after comments by the U.S. on China soothed concerns about an escalating trade spat between the world's two biggest economies. FUNDAMENTALS * COPPER: London Metal Exchange copper edged up 0.2 percent to $6734.50 a tonne by 0704 GMT, after falling 1 percent in the previous session. Prices are rebounding from a three-month low of $6532 a tonne hit on March 23. * SHFE: The Shanghai Futures Exchange was closed Thursday for China's national Tomb Sweeping Day holiday. * U.S. TRADE: The United States signalled its willingness on Wednesday to try to resolve an escalating trade dispute with China after Beijing retaliated against proposed U.S. tariffs on $50 billion in Chinese goods by targeting key American imports. * CHINA TRADE: The U.S. and China should avoid a trade war, China's Ambassador to the United States, Cui Tiankai, said on Wednesday, stressing that Beijing's preference was to resolve the dispute through negotiations. * ALUMINIUM: Shanghai Futures Exchange (ShFE) aluminium stocks have fallen for the first time in more than nine months, giving the market faint hopes of a drawdown on record inventories of the metal in China, the world's biggest aluminium producer and consumer.