METALS-Copper rises on economic recovery prospects, dollar

* ECB's Draghi expects euro zone recovery this year

* Brighter outlook boosts equities, oil

* Coming up: U.S. new home sales; 1500 GMT

LONDON, Jan 25 (Reuters) - Copper rose on Friday as the dollar fell and data from China and the United States signalled strengthening global growth, as well as prospects of recovery in the euro zone this year. Manufacturing in China and the United States grew this month at the fastest pace in about two years while data suggested German growth picked up boosted hopes for the battered euro zone. European Central Bank President Mario Draghi also expects the euro zone economy to recover later this year, adding that financial market improvements have not yet trickled into the general economy. The brighter outlook lifted shares and oil prices and the euro extended a rally against the dollar. A weaker dollar makes commodities priced in the currency cheaper for holders of other currencies, like the euro. Three-month copper on the London Metal Exchange rose by 0.2 percent to $8,114 a tonne by 1130 GMT, after finishing the previous session at $8,095.5. "The support this week has come from positive data, and linked with that the dollar is weak," BNP Paribas analyst Stephen Briggs said. "Base metals have under-performed stock markets. We've had a generally strong risk-on start to the year which has done a lot for stock markets. In comparison with that base metals have been pretty tepid, so there is potential for catch-up given that underperformance." The broad Standard and Poor's 500 stock market index is up more than 5 percent so far this year, compared with LME benchmark copper, which has risen around 2 percent. Copper has been caught in a band of $7,920 to $8,250 a tonne so far this year, after an early January rally to 2-1/2 month highs fizzled out. "Data is improving in Europe and the United States and most importantly also from China, such as we saw in the steady improvement in the HSBC flash PMI yesterday," said strategist Nick Trevethan of ANZ in Singapore. "We should see a little bit of a pick-up in quarter two after the Chinese New Year, and we should start to see acceleration in demand in the second half of the year - but expect range trading in the next three weeks before then." China's markets will be closed from Feb. 11 to Feb 15 for the Lunar New Year. "With both China and the U.S. showing very good progress in an economic turnaround, the downside for the metals market remains limited," RBC said in a research note. "For now the road block remain the negotiations on US tax and spending issues ala the debt ceiling, but then again seems no one told the equity markets to worry as they continue to power higher on good earnings and forward optimism." Three-month LME aluminium rose 0.4 percent to $2084.5 per tonne from $2076 at the close on Thursday, zinc was up 0.7 percent at $2,103 from a last bid of $2,089 and tin was up 0.5 percent at $24,755 from a last bid of $24,625. Nickel was down 0.5 percent at $17,305 per tonne from $17390 and lead was $2,400 from $2,403.

Metal Prices at 1130 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T

Metal Last Change Pct Move End 2012 Ytd Pct

move

COMEX Cu 368.35 1.55 +0.42 365.25 0.85 LME Alum 2084.75 8.75 +0.42 2073.00 0.57 LME Cu 8112.00 16.50 +0.20 7931.00 2.28 LME Lead 2399.75 -3.25 -0.14 2330.00 2.99 LME Nickel 17292.00 -98.00 -0.56 17060.00 1.36 LME Tin 24753.00 303.00 +1.24 23400.00 5.78 LME Zinc 2103.00 50.00 +2.44 2080.00 1.11 SHFE Alu 15225.00 -5.00 -0.03 15435.00 -1.36 SHFE Cu* 58640.00 210.00 +0.36 57690.00 1.65 SHFE Zin 15635.00 165.00 +1.07 15625.00 0.06 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN

SHFE ZN began trading on 26/3/07