* Euro erases gains, falls vs the dollar, equities down * LME tin in backwardation, first time since Nov * Coming Up: U.S. CPI, retail sales; 1230 GMT LONDON, Aug 13 - Copper reversed earlier gains on Friday, after the euro tumbled versus the dollar and European equities turned negative as the market awaited key U.S. data for more clues about the health of world's biggest economy. Copper for three months delivery on the London Metal Exchange fell to $7,220 a tonne in the open outcry trade, versus $7,260 a tonne at the close on Thursday. It rose earlier as data showed European economic growth accelerated sharply in the second quarter of this year, but this was not sufficient to alleviate worries about U.S. growth, stoked by recent poor economic data. "The rest of the day will depend on the direction of the U.S. data," analyst Eugen Weinberg at Commerzbank said. The market is definitely prepared for bad data," he said. German and eurozone growth numbers had triggered a rally in euro, which rose to a session high of $1.2906 earlier in the day. The single currency had since then erased gains and hit its lowest in three weeks versus the dollar. A stronger dollar makes industrial metals more expensive for the holders of local currencies. Copper's rally to a three-month high of $7,527 a tonne last week was stalled by recent data from the U.S., showing a slowdown in the pace of economic recovery. "There's no good news out there," an LME trader said. "It's been pretty bleak lately so I don't see any reason that this afternoon's numbers would be any different," he said. U.S. retail sales data as well as consumer prices are due at 1230 GMT. TIGHTER MARKETS Fundamentals could cushion a potential fall in copper prices, with global output down sharply in the first half of 2010, signalling a tighter supply/demand balance in the months ahead. A continued drawdown in LME stockpiles, suggesting improving demand, had boosted copper futures by around 21 percent from eight-month lows touched in early June. In Shanghai, the weekly copper inventory rose 7.1 percent to 113,870 tonnes this week, data from Shanghai Futures Exchange showed, the second straight week of increase. Tight supplies looks to be a feature of other metal markets as well. In aluminium worries about near-term supplies have narrowed the contango -- the discount between the cash and three-month contracts -- to about $8 a tonne from $33 a tonne mid-June. It traded at $2,149 a tonne versus Thursday's $2,163.5 a tonne. Zinc was at $2,058 a tonne from $2,056 while lead fell to $2,090.50 a tonne from $2,100. LME cash tin moved to a premium over the three-month price, going into backwardation for the first time in more than eight months. The backwardation suggests looming tightness in supply, although tin is a relatively illiquid market and is the smallest on the LME. Indonesia, the world's largest exporter of the metal, said on Thursday its refined tin output for 2010 may fall 20 percent from a government target of 105,000 tonnes as unseasonably long rains hamper mining. Three-month LME tin rose to $20,600 a tonne, extending a more than 3 percent jump on Thursday. Nickel was last at $21,525 a tonne from $21,500. Metal Prices at 1209 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Percent Move End 2009 Ytd Percent move COMEX Cu 326.80 -1.60 -0.49 334.65 -2.35 LME Alum 2148.00 -15.50 -0.72 2230.00 -3.68 LME Cu 7220.00 -40.00 -0.55 7375.00 -2.10 LME Lead 2090.50 -9.50 -0.45 2432.00 -14.04 LME Nickel 21475.00 -25.00 -0.12 18525.00 15.92 LME Tin 20500.00 0.00 +0.00 16950.00 20.94 LME Zinc 2058.00 2.00 +0.10 2560.00 -19.61 SHFE Alu 15415.00 175.00 +1.15 17160.00 -10.17 SHFE Cu* 57400.00 1000.00 +1.77 59900.00 -4.17 SHFE Zin 16985.00 450.00 +2.72 21195.00 -19.86 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

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