SHANGHAI, June 5 (Reuters) - Shanghai copper bounced off its lowest level in 2012 on Tuesday on hopes that policymakers from the Group of Seven leading industrialised powers will work out measures to ease the euro zone debt crisis.
The euro and equities clawed back from heavy losses as many investors paused their selling of riskier assets ahead of an emergency conference call among G7 finance chiefs later in the session. The last-miniute talks underlined the heightened global alarm about strains in the euro zone.
The most-active September copper contract on the Shanghai Futures Exchange regained 1.4 percent to 53,480 yuan ($8,400) a tonne, after hitting a fresh 2012 low of 52,330 yuan on Monday.
Some hope that more fiscal integration among euro zone countries -- a scheme promoted by German Chancellor Angela Merkel -- will result in a region-wide deposit guarantee scheme that can help leaders better manage the debt crisis there.
Merkel is pressing for much more ambitious measures, including a central authority to manage euro area finances, and major new powers for the European Commission, European Parliament and European Court of Justice.
Euro zone factory prices unexpectedly held steady in April, marking the fourth straight month of weakening inflation pressures and giving the European Central Bank some space to cut interest rates as the continent's economy slumps.
Spanish Prime Minister Mariano Rajoy is pressing for a direct European rescue for Spain's banks, with moral support from the European Commission, but Germany appeared to rule out the bailout for the euro zone's fourth biggest member.
New orders for U.S. factory goods fell in April for the third time in four months as demand slipped for everything from cars and machinery to computers, the latest worrisome sign for the U.S. economy.
The London Metal Exchange is closed for the Diamond Jubilee Holiday on June 4 and June 5.
Asian shares and commodities staged a mild recovery on Tuesday, with stocks holding a touch above 2012 lows, as investors looked to European policymakers and the wider G7 to take decisive action to address the worsening euro zone crisis.
Hopes of such decisive action also pushed the euro up further from last week's two-year low, as sellers were tempted to pare back their huge bets against the currency ahead of the G7 conference call.
0230 China HSBC Services PMI May
0758 Euro zone Markit svcs, comp PMI May
1000 Germany Industrial Orders MM Apr
1145 U.S. ICSC chain stores yy Weekly
1255 U.S. Redbook retail sales Weekly
1400 U.S. ISM Non-Manufacturing PMI May
Base metals prices at 0147 GMT
Metal Last Change Pct Move YTD pct chg
SHFE CU FUT SEP2 53480 710 +1.35 -3.86
SHFE AL FUT SEP2 15950 85 +0.54 0.69
HG COPPER JUL2 333.40 2.70 +0.82 -2.97
SHFE ZN FUT SEP2 14690 140 +0.96 -0.71
SHFE PB FUT 14980 95 +0.64 -2.03
Shanghai and COMEX contracts show most active months
($1 = 6.3645 Chinese yuan)