Copper fell on the London Metal Exchange on Friday, paring a 2 percent rally in the previous session after positive U.S. durable goods data and fresh optimism about the housing market and jobs. Copper gained after the U.S. Commerce Department reported new orders for durable goods rose 1.9 percent from March, the biggest percentage advance since December 2007. Other data showing that sales of new U.S. single-family homes rose slightly in April and fewer workers filed for first-time jobless aid last week also fed sentiment that the world's biggest economy may have turned a corner. Friday's data clutch will also be scrutinised, including numbers from Germany on retail sales for April and Euro zone flash inflation for May, followed by preliminary first quarter GDP figures for the United States. "We are getting some better numbers and the currency markets are supporting metals prices," ANZ's senior commodities analyst Mark Pervan said. "We may now be looking at a W-shaped recovery. We are in the first V, and another is to come though, I don't think it will be as steep as the first. You'll be hard pressed to see things back to the December lows." London Metal Exchange copper for delivery in three months fell $45 to $4,710 a tonne at 0336 GMT after Thursday's close at a three-week peak. The market, up 6.5 percent in May, is heading for its fifth consecutive monthly rise, but May's performance is its weakest since January. Shanghai markets are closed Friday for the second day of the two-day Dragon Boat Festival holiday. Stocks of copper in LME warehouses fell by 2,150 tonnes to 317,125 tonnes while cancelled warrants rose to 43,650 from 43,375 tonnes. For graphics showing weekly global metals stocks click: Copper: http://graphics.thomsonreuters.com/059/GLB_CPRSTK09.jpg Aluminium: http://graphics.thomsonreuters.com/059/GLB_ALISTK09.jpg Zinc: http://graphics.thomsonreuters.com/059/GLB_ZNCSTK09.jpg Nickel continued its flirtation with resistance towards $14,000, trading at $13,550. Support came from high levels of cancelled warrants -- 6 percent globally. In Asia almost a quarter of the 16,000 tonnes in warehouses is tagged for delivery and cancellations are rising in Europe too. "Cancelled nickel in Europe is up -- maybe part of a seasonal restocking. The stainless industry there frequently draws on LME stocks in the third quarter," Pervan said. Base metals prices at 0351 GMT Metal Last Change Pct Move End 2008 Pct chg 09 LME Cu 4710.00 -45.00 -0.95 3060.00 53.92 LME Alum 1410.00 -2.00 -0.14 1535.00 -8.14 COMEX Cu** 213.55 0.00 +0.00 139.50 53.08 LME Zinc 1475.00 0.00 +0.00 1208.00 22.10 LME Nickel 13500.00 0.00 0.300 11700.00 15.38 LME Lead 1475.00 -3.00 -0.20 999.00 47.65 LME Tin 13550.00 -100.00 -0.73 10700.00 26.64 ** 1st contract month for COMEX copper (Editing by Clarence Fernandez)

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