* LME copper off 0.4 pct after surging 9 pct last week * Optimism rising on euro zone efforts, Italy measures * Coming Up: U.S. ISM non-manufacturing PMI, 1500 GMT (Adds comments, updates prices) By Manolo Serapio Jr SINGAPORE, Dec 5 (Reuters) - London copper futures retreated on Monday after their best week in five weeks ahead of a key summit in Europe from which investors expect bolder measures to stem the euro zone's debt crisis. But rising optimism in the market took the price of copper above $8,000 when the market opened on Monday. This was a level last seen in early November, but some participants quickly saw it as an opportunity to book profits. The new head of the European Central Bank has signaled it was ready to act more aggressively if political leaders agree on tighter budget controls at a summit on Friday, where euro zone leaders are hoping to secure a convincing plan to resolve a two-year-old debt crisis. Ahead of the meeting, Italian Prime Minister Mario Monti will present to parliament on Monday a 30-billion-euro package of austerity measures designed to shore up Italy's strained public finances. "I think we're getting ready for a strong Christmas rally in copper," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney. "We're seeing a higher level of optimism and people will probably take the market higher in the lead up to Friday," said Barratt, who expects copper to rally to as much as $8,350 this month. Three-month copper on the London Metal Exchange slipped 0.4 percent to $7,863.75 a tonne by 0339 GMT. Copper opened at the day's high of $8,015, up $120 or 1.5 percent more than Friday's closing level with around 300 lots traded on LME Select, according to Reuters data. The price fell soon after, hitting a session low of $7,844.50. "Somebody had fairly bullish expectations early on and other market participants took advantage of that. Anybody who sold into that must be feeling quite pleased with themselves," said a metals trader in Singapore. LME copper jumped 9.1 percent last week, supported by a surprise move by major global central banks to inject cheaper liquidity into troubled European banks. The most-active February copper contract on the Shanghai Futures Exchange eased 0.2 percent to 57,970 yuan a tonne. Better economic data out of the United States and signs that China may continue to adopt more pro-growth measures in the face of weaker manufacturing and services data should also support sentiment towards copper, said Barratt of Commodity Broking Services. U.S. unemployment dropped to a 2-1/2 year low in November, despite the still slow pace of U.S. hiring, data showed on Friday. China's services sector shrank in November, mirroring similar weakness in the country's manufacturing sector and reinforcing expectations that Beijing can ease monetary policy further to cushion the blow from the global economy. The HSBC Purchasing Managers' Index for China's services sector fell to 52.5 from 54.1 in November, its slowest growth in three months and the latest of a string of data that reveal a quickly cooling economy in need of policy support. China's factory sector data last week pointed to weakening orders from home and overseas, helping explain the central bank's decision to cut the reserve requirement for commercial lenders for the first time in three years. Base metals prices at 0339 GMT Metal Last Change Pct Move YTD pct chg LME Cu 7863.75 -31.25 -0.40 -18.09 SHFE CU FUT FEB2 57970 -90 -0.16 -19.32 LME Alum 2122.00 -8.00 -0.38 -14.09 SHFE AL FUT FEB2 16235 -20 -0.12 -3.59 HG COPPER MAR2 357.55 -1.00 -0.25 -19.46 LME Zinc 2022.25 -29.75 -1.45 -17.59 SHFE ZN FUT MAR2 15735 -80 -0.51 -19.20 LME Nickel 17650.00 -90.00 -0.51 -28.69 LME Lead 2090.00 -15.00 -0.71 -18.04 SHFE PB FUT 15670 20 +0.13 -14.60 LME Tin 20000.00 50.00 +0.25 -25.65 LME/Shanghai arb 587 Shanghai and COMEX contracts show most active months ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month

Source