SHANGHAI, June 28 (Reuters) - London copper rose for a fourth consecutive session, with investors cheered by encouraging U.S. economic data, but an EU summit later in the day could limit gains, with euro zone leaders seeming more divergent than ever in their views after Germany rejected calls for common euro zone bonds.
Three-month copper on the London Metal Exchange was up 0.3 percent at $7,429.75 per tonne by 0114 GMT, its fourth daily rise in a row, after a gain of 0.6 percent in the previous session.
The most-active October copper contract on the Shanghai Futures Exchange moved up 0.9 percent to 54,240 yuan ($8,500) per tonne, after ending the previous session 0.2 percent higher.
On the eve of an EU summit that could determine the future of the euro zone, German Chancellor Angela Merkel brushed aside increasingly shrill calls from Spain and Italy on Wednesday for emergency action to lower their soaring borrowing costs.
European Union leaders go into the two-day meeting on Thursday afternoon (1300 GMT) more openly divided than at any time since a still-widening debt crisis erupted in early 2010, when Greece revealed its budget deficit and debt were far higher than reported.
Demand for long-lasting U.S. manufactured goods rebounded more than expected in May and a gauge of planned business spending increased, adding to investor cheer along with recent signs of a budding recovery in the housing market.
But analysts warned the momentum might not be sustained as the global economy continues to cool.
Spain won time on Wednesday to negotiate the terms of European aid for its banks when it gained approval for a state liquidity guarantee of 19 billion euros for Bankia SA, the country's biggest problem lender.
Spain has been seeking a temporary mechanism to fund four nationalised banks that urgently need money, since it could take three to four months for a European aid package of up to 100 billion euros to reach the country's financial system.
Asian shares rose on Thursday on encouraging U.S. economic data, but prices could falter with markets tense ahead of the European summit deeply divided on how to tackle the protracted euro zone debt crisis and stop it spreading further.
The euro stayed on the backfoot in Asia on Thursday, although its downside was seen limited lest an impending summit of European leaders surprised markets with concrete measures to tackle the region's debt crisis.
Two-day European Union Summit in Brussels starts
0755 Germany Unemployment rate
0900 Euro Zone Business climate
0900 Euro Zone Economic sentiment
1230 U.S. Final Q1 GDP
1430 U.S. Weekly jobless claims
Base metals prices at 0114 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7429.75 24.75 +0.33 -2.24
SHFE CU FUT OCT2 54240 500 +0.93 -2.50
LME Alum 1875.00 3.00 +0.16 -7.18
SHFE AL FUT OCT2 15185 125 +0.83 -4.14
HG COPPER JUL2 335.35 0.40 +0.12 -2.40
LME Zinc 1773.00 17.00 +0.97 -3.90
SHFE ZN FUT OCT2 14280 35 +0.25 -3.48
LME Nickel 16351.00 101.00 +0.62 -12.61
LME Lead 1768.75 8.75 +0.50 -13.08
SHFE PB FUT 0 -14390 -100.00 -100.00
LME Tin 18700.00 0.00 +0.00 -2.60
LME/Shanghai arb 741
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
($1 = 6.3554 Chinese yuan)