METALS-Copper dips as dollar gains; global growth outlook supports

* Eurozone investor sentiment highest in almost 2 years

* Investors raise bullish bets on copper -CFTC data

* LME copper cancelled warrants near highest since May

(Recasts, updates prices, adds details/quote, changes dateline, pvs Singapore) LONDON, Jan 7 (Reuters) - Copper eased on Monday as the dollar rose, and investors remained concerned the U.S. Federal Reserve might halt asset purchases, but losses were limited by an improved growth outlook in the United States and China, and less gloom in Europe. The dollar edged up versus the euro, making dollar-priced metals more expensive for European and other non-U.S. investors. In addition, investors remained spooked by minutes from the latest Fed meeting which last week signalled it may rein in easing measures sooner than expected. On the plus-side, data showed euro zone sentiment improved for a fifth consecutive month in January to its highest in almost two years after a successful Greek bond buyback and a dip in Spanish jobless figures. Also, data on Friday showed that U.S. employers kept up a steady pace of hiring in December and that the country's vast services sector was expanding at a brisk rate, while manufacturing surveys pointed to growing activity in China. This compounded the boost to markets after U.S. lawmakers at the end of December struck a deal to avoid going over the so-called fiscal cliff of devastating tax increases and spending cuts - a move that sent copper to two month highs. Three-month copper on the London Metal Exchange was down 0.52 percent at $8,040 a tonne by 1117 GMT, after losses of almost 1 percent in the previous session. After closing 2012 with gains of 4.3 percent, copper prices rallied to $8,256.50 a tonne on Jan. 3, the highest since Oct. 18. Copper prices are up nearly 2 percent year-to-date. "Chinese growth is improving, it's not going to be the double digit growth levels of a few years ago but we'll still have China come back. Also, the Fed is going to scale back (asset purchases) at some point but there will still be lots of liquidity around," said Danske Bank analyst Christin Tuxen. China's official manufacturing purchasing managers' index held steady in December at 50.6, matching November's seven-month high. China's trade and producer price data is due later in the week. China is the world's top consumer of industrial metals, accounting for around 40 percent of refined copper demand. "Although recent Chinese numbers have been coming in on the stronger side, the government has yet to make hard decisions with regard to nonperforming loans and highly leveraged debt instruments prevalent among retail investors," said INTL FCStone analyst Ed Meir. "(Also), we would suggest that the biggest threat to the global economy right now is not the European debt crisis, or a Chinese hard landing, or even a strike on Iran, but arguably, the gridlock we face in Washington and the alarming inability of our elected representatives to get anything done." U.S. stock index futures pointed to a weaker open on Wall Street on Monday, with equities seen consolidating after scaling new highs in the previous session. European shares dipped meanwhile, although losses were limited by gains in banking shares propelled by regulators' decision to ease new liquidity rules for the sector.

FUNDAMENTAL TURN There were signs investors are turning more bullish for copper's 2013 outlook as hedge funds and money managers increased the size of their net longs in the week to Dec. 31, Commodity Futures Trading Commission data showed on Friday. For copper, speculative investors increased their net longs Signs of increased demand for copper were also seen in new delivery orders - called cancelled warrants - for copper in the latest LME stocks data. Cancelled warrants were at 70,275, near their highest since early May 2012, the most recent LME data showed. Copper for delivery and unavailable to market stands at almost one quarter of LME supplies. <MCUSTX-TOTAL> In other metals, three-month zinc fell 0.78 percent to $2,024 a tonne, lead was down 1.05 percent at $2,311 and aluminium dropped 0.95 percent to $2,039. In industry news, India's state-run National Aluminium Co Ltd (NALCO) NALU.NS has finalised a long-term export contract with a Switzerland based buyer for 270,000 tonnes of alumina for deliveries in 2013 at 16.53 percent of the LME aluminium price, company sources said on Monday. Elsewhere, nickel fell 0.32 percent to $17,299 a tonne and tin bucked the trend, rising 0.21 percent to $23,850.

Metal Prices at 1124 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T

Metal Last Change Pct Move End 2011 Ytd Pct

move

COMEX Cu 365.40 -3.30 -0.90 344.75 5.99 LME Alum 2038.25 -77.75 -3.67 2020.00 0.90 LME Cu 8035.00 -50.00 -0.62 7600.00 5.72 LME Lead 2296.75 -38.25 -1.64 2034.00 12.92 LME Nickel 17250.00 -100.00 -0.58 18650.00 -7.51 LME Tin 23775.00 -25.00 -0.11 19200.00 23.83 LME Zinc 2019.25 -68.75 -3.29 1845.00 9.44 SHFE Alu 15265.00 -50.00 -0.33 15845.00 -3.66 SHFE Cu* 58090.00 -120.00 -0.21 55360.00 4.93 SHFE Zin 15380.00 -160.00 -1.03 14795.00 3.95 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN

SHFE ZN began trading on 26/3/07

(Reporting by Maytaal Angel)