#USChinaTradeTalks US-China trade and mineral talks in London to extend into second day; Trump optimistic

LONDON, June 9 (Reuters) - Trade talks between the United States and China are expected to extend into a second day in London, as top economic officials from the world's two largest economies sought to defuse a bitter dispute that has widened from tariffs to restrictions on rare earths, threatening a global supply chain shock and slower economic growth.

Talks at Lancaster House, an ornate UK government mansion, ended late Monday and will resume at 10 a.m. BST (0900 GMT) on Tuesday, a U.S. source familiar with the negotiations said.

Washington and Beijing are trying to revive a temporary truce reached in Geneva that briefly reduced trade tensions and calmed markets.

Since then, the United States has accused China of delaying its commitments, particularly regarding shipments of rare earths.

US President Donald Trump on Monday put a positive spin on the talks, saying they were going well and that he was "only getting good reports" from his team in London.