SHANGHAI, June 6 (Reuters) - London copper rose slightly on Wednesday on a weaker dollar in its first trading session this week with investors playing it safe ahead of a European Central Bank meeting that may offer a solution to the euro zone debt crisis.
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 nudged up 0.2 percent to $7,375.75 a tonne by 0447 GMT, resuming trade after a two-day holiday in the United Kingdom.
The most-active September copper contract on the Shanghai Futures Exchange edged up 0.5 percent to 53,750 yuan ($8,400) a tonne, gaining for a second straight session on short-covering.
"Copper prices have hardly moved, just floating slightly higher today, tracking the euro. For now, I see London copper ranging between $7,335 and $7,545," said an LME trader.
The euro -- a barometer for sentiment on the single-currency bloc -- moved higher, helping to push down the dollar, which makes commodities denominated in the greenback cheaper.
"Copper extends its technical rebound this morning after being oversold late last week and early this week," said Wan Ling, an analyst with metals consultancy CRU Group.
London copper lost over 4 percent between Tuesday and Friday last week and Shanghai copper also fell more than 4 percent in the week ended on Tuesday.
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 are hoping to get more trading directions from the ECB's 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.
Separately, data also showed German industrial orders slumping 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.
Across the Atlantic, Federal Reserve chief Ben Bernanke will be testifying before a congressional panel on Thursday, raising hopes that he will signal some form of monetary easing.
"We are most anticipating announcements from the Fed later this month on whether the U.S. will roll out a QEIII. That we think is a likelihood that will move the market the most," said Wan.
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.
Base metals prices at 0447 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7375.75 14.75 +0.20 -2.95
SHFE CU FUT SEP2 53750 260 +0.49 -3.38
LME Alum 1982.25 9.75 +0.49 -1.87
SHFE AL FUT SEP2 15905 -40 -0.25 0.41
HG COPPER JUL2 333.25 4.35 +1.32 -3.01
LME Zinc 1886.50 -3.50 -0.19 2.25
SHFE ZN FUT SEP2 14790 105 +0.72 -0.03
LME Nickel 16000.00 -100.00 -0.62 -14.48
LME Lead 1914.00 14.00 +0.74 -5.95
SHFE PB FUT 15075 25 +0.17 -1.41
LME Tin 19575.00 180.00 +0.93 1.95
LME/Shanghai arb 917
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
($1 = 6.3675 Chinese yuan)