SINGAPORE, July 21 (Reuters) - London copper edged higher on Thursday, as the dollar weakened amid rising worries about the U.S. debt limit with less than two weeks to go before the world's largest economy runs out of money on Aug. 2. The euro rose versus the greenback on news Germany and France had agreed a joint position on a debt bailout for Greece, fuelling hopes for real progress after so many false starts. FUNDAMENTALS * Three-month copper on the London Metal Exchange gained $17 to $9,772 a tonne by 0101 GMT. * LME copper dropped for the first time in four sessions on Wednesday, but could still be on track for a fourth consecutive week of gains after rising to three-month highs on Tuesday. * Shanghai's most-active October contract SCFcv1 was little changed at 72,700 yuan a tonne. * Hopes demand from top copper consumer China will stay strong in the second half of 2011 had been boosting sentiment in the metal although worries about debt in the United States and Europe kept gains in check. * German Chancellor Angela Merkel and France's President Nicolas Sarkozy reached a joint position late on Wednesday over a new bailout plan for Greece that will include participation of the banking sector. * EU leaders must find a convincing solution to Greece's debt crisis at a summit on Thursday or the global economy will pay the price, said Jose Manuel Barroso, the head of the European Commission. * The Federal Reserve is preparing for the possibility that the United States could default as a deadline for raising the government's $14.3 trillion borrowing limit looms, said Charles Plosser, president of the Philadelphia Federal Reserve Bank. * The White House signaled it could support a short-term increase in the U.S. borrowing limit for "a few days" if lawmakers agreed to a broad deficit reduction deal but needed more time to pass it. * Sales of previously owned U.S. homes hit a seven-month low in June as demand for condominiums fell and contract cancellations surged, dampening hopes the distressed housing market was starting to improve. * Global steel production rose again in June, led by record output in China, and U.S. steelmakers also made more, despite slow growth in the world's largest economy. * For the top stories in metals and other news, click , or MARKETS NEWS * U.S. stocks closed nearly flat on Wednesday a day after Wall Street's best rally since March, as the ongoing debt ceiling deadline overshadowed strong earnings from Apple. * U.S. oil steadied above $98 a barrel on Thursday, supported by a larger-than-expected drawdown in U.S. crude inventories and optimism that European policymakers will forge a rescue plan for debt-ravaged Greece. DATA/EVENTS (GMT) 0230 China HSBC Flash PMI 0758 EZ Markit Mfg flash PMI Jul 1000 Euro zone leaders meet to discuss 2nd Greece bailout 1230 U.S. Unemployment claims Weekly 1400 Fed's Bernanke testifies to Senate banking committee Base metals prices at 0101 GMT Metal Last Change Pct Move End 2010 YTD pct chg LME Cu 9772.00 17.00 +0.17 9600.00 1.79 SHFE Cu* 72700.00 20.00 +0.03 71850.00 1.18 LME Alum 2533.75 -2.25 -0.09 2470.00 2.58 SHFE Alum* 17645.00 10.00 +0.06 16840.00 4.78 COMEX Cu** 444.05 1.20 +0.27 443.95 0.02 LME Zinc 2455.00 1.00 +0.04 2454.00 0.04 SHFE Zinc 18705.00 10.00 +0.05 19475.00 -3.95 LME Nickel 24050.00 5.00 +0.02 24750.00 -2.83 LME Lead 2713.00 13.00 +0.48 2550.00 6.39 LME Tin 27900.00 -400.00 -1.41 26900.00 3.72 LME/Shanghai arb^ 1119 Dollar/yuan 6.4565 \ 6.4575 ** 1st contract month for COMEX copper * 3rd contact month for SHFE aluminium, copper and zinc ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month (Reporting by Manolo Serapio Jr.; Editing by Himani Sarkar)

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