* Euro rises, Draghi says ready to defend currency * Tin drop spurs Chinese buying * Coming Up: U.S. durable goods for June; 1230 GMT By Susan Thomas LONDON, July 26 (Reuters) - Copper rose on Thursday, recovering from a one-month low hit the previous session, as the dollar fell but weak corporate earnings reports and data that reflected the growing impact of the debt crisis in Europe subdued gains. Three-month copper on the London Metal Exchange was $7,482 from $7,446 at the close on Wednesday, when it touched the lowest in one month at $7,344.25 a tonne. The metal, used mainly in construction and power, has shed 15 percent from the year's peak hit in February. In the United States, the world's largst economy, new home sales recorded their biggest drop in more than a year last month and prices resumed their downward trend, dealing a setback for the recovery in the housing market. Copper is used extensively in construction. The big drop, combined with other disappointing U.S. macro data and company earnings, has added to investors' persistent worries about the crisis in Europe, with the possibility of Spain applying for a full bailout shredding investor nerves. The debt crisis also poses the biggest risk to China, the world's largest consumer of copper, the International Monetary Fund said, and expects economic growth to moderate to 8 percent. "That's all conspiring to see some risk taken off table. All the data points to economies in recession or continuing to slow, which is not good for the base metals complex," said Societe Generale analyst Robin Bhar. "The general trend is still downwards." The dollar fell as the euro rose after European Central Bank President Mario Draghi said the central bank was ready to do whatever it takes to preserve the euro. A weaker U.S. unit makes dollar-priced commodities such as metals cheaper, and therefore more attractive, for holders of other currencies. "I think for the moment the trend is still lower and the charts still point to support levels being tested, and it would appear that some of the hot money is still playing from the short side," Bhar said. CHINA In tin, a sharp drop in the price has spurred a pickup in China purchases, RBC Capital said in a note. Three-month tin, one of the LME's smallest and most illiquid contracts, hit a 10-month low of $17,125 a tonne on Wednesday. It was up 0.9 percent at $17,500, but is still down more than 7 percent this week. Tin and benchmark nickel "are both flirting with new yearly lows and show few signs of reversing," RBC said. "The shorts are piling in but have not reached the danger zone yet as indicators are not decidedly oversold." Nickel was up 0.5 percent at $15,950 from a close of $15,900. The metal is down 1.3 percent this week. Aluminium was up 0.7 percent at $1,884 per tonne from $1,870 at the close on Wednesday. Zinc was up 1 percent at $1,819 from $1,801, and lead was up 1.2 percent at $1,879 from $1,855. Metal Prices at 1040 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Pct Move End 2011 Ytd Pct move COMEX Cu 337.15 -0.35 -0.10 344.75 -2.20 LME Alum 1882.00 12.00 +0.64 2020.00 -6.83 LME Cu 7485.25 39.25 +0.53 7600.00 -1.51 LME Lead 1875.50 20.50 +1.11 2034.00 -7.79 LME Nickel 15974.00 74.00 +0.47 18650.00 -14.35 LME Tin 17500.00 155.00 +0.89 19200.00 -8.85 LME Zinc 1818.00 17.00 +0.94 1845.00 -1.46 SHFE Alu 15350.00 90.00 +0.59 15845.00 -3.12 SHFE Cu* 54430.00 520.00 +0.96 55360.00 -1.68 SHFE Zin 14460.00 100.00 +0.70 14795.00 -2.26 ** 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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