* LME copper declines from four-month high * Shanghai copper resumes trade after week-long holiday * Greece debt swap deal eyed, investors cautious * Coming Up: Euro zone business climate; 1000 GMT (Updates prices) By Jane Lee KUALA LUMPUR, Jan 30 (Reuters) - Copper pulled back on Monday from a four-month high as investors cautiously awaited a debt swap deal for Greece that is seen as key to avoiding a disorderly default. Three-month copper on the London Metal Exchange fell 1.7 percent to $8,385 a tonne by 0704 GMT, after reaching $8,679.50 on Friday, the highest since Sept. 16. Prices are headed for the biggest monthly gain since October, with an increase of 10 percent. The most-traded April copper contract on the Shanghai Futures Exchange lost 0.7 percent to 60,320 yuan ($9,500) a tonne. The exchange re-opened Monday after a week-long Lunar New Year holiday. European Union leaders will sign off on a permanent rescue fund for the euro zone at a summit on Monday and are expected to agree on a balanced budget rule in national legislation. Still, Greece's negotiations with creditors to prevent a disorderly default are hanging over markets. "Whatever deal they cut at this point will only extend the rope a little for Greece to hold on to," said Song Seng Wun, regional economist at CIMB Research in Singapore. "They have to cut a deal without which all sides will lose." The euro came off six-week highs against the dollar on Monday, as investors took profits made on its strongest weekly rally in more than a quarter and awaited a debt deal between Greece and its private creditors. Money managers, including hedge funds and other large speculators, raised their net long position in gold, silver and copper futures and options in the week ended Jan. 24, as prices of the metals climbed, U.S. Commodity Futures Trading Commission figures showed. Copper slipped in moderate volume on Friday as U.S. economic growth figures disappointed investors. The U.S. economy, the world's largest, grew at its fastest pace in 1-1/2 years in the fourth quarter, but a strong rebuilding of stocks by businesses and weak spending on capital goods hinted at slower growth in early 2012. Base metals prices at 0704 GMT Metal Last Change Pct Move YTD pct chg LME Cu 8385.00 -145.00 -1.70 10.33 SHFE CU FUT APR2 60320 -400 -0.66 8.96 HG COPPER MAR2 381.25 -7.65 -1.97 10.96 LME Alum 2234.50 -30.50 -1.35 10.62 SHFE AL FUT APR2 16275 -120 -0.73 2.71 LME Zinc 2090.00 -60.00 -2.79 13.28 SHFE ZN FUT APR2 15940 85 +0.54 7.74 LME Nickel 21350.00 -350.00 -1.61 14.11 LME Lead 2240.00 -55.00 -2.40 10.07 SHFE PB FUT 16120.00 0.00 +0.00 5.46 LME Tin 24040.00 -360.00 -1.48 25.21 LME/Shanghai arb^ 1658 Shanghai and COMEX contracts show most active months ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month ($1 = 6.3390 Chinese yuan)

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