SHANGHAI, June 6 (Reuters) - London copper rose on Wednesday, its first trading day this week, benefitting from a weaker dollar as investors looked to the European Central Bank for a possible solution to the euro zone debt crisis which has hurt raw material demand.
The ECB meeting comes a day after finance ministers from the world's seven major economies discussed financial and fiscal union in Europe and agreed to work together to deal with the problems in Spain and Greece, but took no joint action.
Three-month copper on the London Metal Exchange rose 0.4 percent to $7,390 a tonne by 0235 GMT, resuming trade after a two-day holiday in the U.K.
The most-active September copper contract on the Shanghai Futures Exchange edged up 0.7 percent to 53,860 yuan ($8,500) a tonne, gaining for a second straight session.
Although the meeting among finance chiefs of the Group of Seven economies did not yield concrete actions towards resolving the euro zone debt crisis, investors continued to pin their hopes on the region's leaders working out bold measures as the ECB holds its monthly rate-setting meeting later on Wednesday.
Any policy to manage the crisis will be timely for Spain, which said on Tuesday it was losing access to credit markets and that Europe should help revive its banks.
Heaping more pressure on Europe's leaders were business surveys showing that all of the euro zone's major economies are now in various states of decline, raising fears that the bloc's financial problems may escalate into a global crisis.
German industrial orders slumped more than expected in April, posting their steepest fall since November 2011, data from the Economy Ministry showed on Tuesday, adding to signs of a slowdown in Europe's biggest economy.
Investors will also look out for signs of whether the U.S. will embark on further monetary easing policies when Federal Reserve chief Ben Bernanke testifies before a congressional panel on Thursday.
Two top Fed officials, however, suggested the U.S. central bank was not preparing to ease monetary policy at a meeting later this month, saying the economic outlook had not deteriorated to the point where action was warranted.
Backing up their opinion was data on Tuesday showing the pace of growth in the vast U.S. services sector edging up in May driven by gains in new orders.
Asian shares nudged up on Wednesday but were capped by concerns that Europe's financial strains could intensify without a global response, as Spain warned that it was being shut out of credit markets.
The euro recovered some ground against the dollar, having fallen after Spain warned it was losing access to credit markets and finance ministers from major economies took no immediate steps to assuage fears about Europe's debt crisis.
1000 Germany Industrial output mm Apr
1145 EZ ECB rate decision Jun
1230 EZ News conference after policy decision
1230 U.S. Productivity Q1
1230 U.S. Labor costs Q1
1400 U.S. Federal Reserve Beige Book
Base metals prices at 0235 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7390.00 29.00 +0.39 -2.76
SHFE CU FUT SEP2 53860 370 +0.69 -2.71
HG COPPER JUL2 333.85 4.95 +1.51 -2.84
LME Alum 1985.75 13.25 +0.67 -1.70
SHFE AL FUT SEP2 15910 -35 -0.22 0.41
LME Zinc 1889.50 -0.50 -0.03 2.41
SHFE ZN FUT SEP2 14800 115 +0.78 0.03
LME Nickel 16093.00 -7.00 -0.04 -13.99
LME Lead 1915.00 15.00 +0.79 -5.90
SHFE PB FUT 15110.00 60.00 +0.40 -1.14
LME Tin 19600.00 205.00 +1.06 2.08
LME/Shanghai arb^ 920
Shanghai and COMEX contracts show most active months
^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
($1 = 6.3675 Chinese yuan)