SHANGHAI, May 8 (Reuters) - London copper rose on Tuesday as the London Metal Exchange resumed trading after a one-day holiday, with sentiment improving on hopes Spain would use public funds to bolster its struggling banks.
But investor mood remained cautious on persistent worries over the global economy, especially in the euro zone where elections in Greece cast doubts on the country's commitment to austerity measures. Key China data due this week is also expected to keep traders on their toes.
Three-month copper on the London Metal Exchange rose 0.5 percent to $8,216 a tonne by 0114 GMT, after falling 0.7 percent on Friday.
The most-active August copper contract on the Shanghai Futures Exchange gained 0.4 percent to 57,820 yuan ($9,200) a tonne, after falling 1.4 percent in the previous session.
Rodrigo Rato stepped down on Monday as chairman of ailing Spanish lender Bankia SA, helping to clear the way for a rescue plan involving the use of public funds to help troubled Spanish banks. The government hopes this will persuade international investors of Spain's financial stability.
But elsewhere in the euro zone, a first attempt to form a new Greek government collapsed in less than a day on Monday after a shock election which left gaping questions over the country's ability to avert bankruptcy and stay in the euro.
Despite a rising chorus of opposition to Berlin's austerity policies that reached a crescendo in Sunday's elections in Greece and France, Germany is ruling out any substantive shift in its approach to Europe's debt crisis.
China will release a slew of data for April this week, including figures for trade, inflation and industrial output.
Shares and riskier assets recovered on Tuesday from the previous day's plunge, as sentiment improved on hopes Spain would use public funds to bolster its struggling banks, although wariness remained over Greece.
The euro slid across the board on Monday after the outcome of elections in Greece and France cast doubt on the political will and commitment to austerity plans regarded as key to tackling the euro zone debt crisis.
1000 Germany Industrial output mm Mar
1145 U.S. ICSC chain stores yy Weekly
1255 U.S. Redbook retail sales Weekly
Base metals prices at 0114 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 8216.00 41.00 +0.50 8.11
SHFE CU FUT AUG2 57820 230 +0.40 3.94
LME Alum 2080.50 13.50 +0.65 3.00
SHFE AL FUT AUG2 16275 00 +0.00 2.75
HG COPPER JUL2 373.75 -3.60 -0.95 8.77
LME Zinc 1998.00 2.00 +0.10 8.29
SHFE ZN FUT AUG2 15510 60 +0.39 4.83
LME Nickel 17529.00 -46.00 -0.26 -6.31
LME Lead 2106.00 6.00 +0.29 3.49
SHFE PB FUT 15715 5 +0.03 2.78
LME Tin 21385.00 -65.00 -0.30 11.38
LME/Shanghai arb 2691
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
($1 = 6.3079 yuan)