* Hopes wane of stimulus from European Central Bank, Fed * China PMI data points to growth stabilisation * Coming next: U.S. PMI data; 1400 GMT By Silvia Antonioli LONDON, Aug 1 (Reuters) - Copper softened on Wednesday as data showed the manufacturing sector contracted in the euro zone and hardly grew in top metals consumer China in July, worsening prospects for metals demand. Benchmark copper on the LME traded at $7,505 a tonne in official rings, down almost 2 percent from $7,560 at the close on Tuesday. It earlier fell to a session low of $7,487.50, its lowest since Friday. The euro zone's manufacturing sector contracted for the 11th straight month in July as output and new orders plummeted, a business survey found, suggesting the downturn is deepening in the bloc's core countries. China's official factory purchasing managers' index fell to an eight-month low of 50.1 in July, suggesting the sector is barely growing, while a rival HSBC survey indicated the more market-sensitive private sector is starting to recover. The Chinese manufacturing data signalled that the private and state-backed parts of China's vast factory sector are stabilising - albeit at a relatively low level of growth. "There is not so much optimism in the market right now due to a combination of weak growth prospects and lower expectations of actions by the central banks," said Eugen Weinberg, head of commodities research at Commerzbank. "The eurozone PMI does not help market sentiment but at least today's PMI data from China not falling below 50 signalled some growth stabilisation. It is also encouraging that Chinese officials want to support the economy." China home prices broke eight straight months of decline in June in a tentative sign that pro-growth policies are gaining traction in the world's second biggest economy. Market participants are now looking towards China's August PMI figures which they believe will be a better indicator of the health of the world's second largest economy. STIMULUS HOPES WANE U.S. monetary authorities will hold a policy briefing later on Wednesday. Investors expectations that the Federal Reserve will announce more easing action at the end its two-day meeting have waned in the last few hours but the Fed is expected to reinforce a commitment to an accommodative stance and could drop hints about more measures in coming weeks. "In my opinion, given the conflicting views within the board it is unlikely that the Fed will announce a third round of monetary easing today," T-commodity consultant, Gianclaudio Torlizzi said in a research note. "If on one hand the U.S. economy has showed a slowdown, confirmed by the second quarter GDP data, on the other hand it is not in such a critical state yet to justify a further expansion of the federal budget." The European Central Bank meeting on Thursday also remains a key focal point for the market which will be looking for policy action from the ECB to shore up the debt-laden euro zone. Top miners Rio Tinto and BHP Billiton announced on Wednesday fresh cost cutting measures to cope with sliding commodities prices and stuttering growth. Tin was untraded in rings but was bid at $17,950 from $18,100 while zinc, used in galvanising, traded at $1,827.50 a tonne in rings from $1,842 at Tuesday's close. Battery material lead exchanged hands at $1,899.50 from $1,920 and aluminium at $1,877.50 from $1,891. Nickel traded at $15,800 from $15,865. Traders said Chinese traders are delaying term nickel imports and returning at a discount metal they had bought as China's slowing economy, and maintenance at major stainless steel mills, further cuts consumption. Metal Prices at 1212 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 340.25 -1.50 -0.44 344.75 -1.31 LME Alum 1879.00 -12.00 -0.63 2020.00 -6.98 LME Cu 7508.50 -51.50 -0.68 7600.00 -1.20 LME Lead 1901.00 -19.00 -0.99 2034.00 -6.54 LME Nickel 15788.00 -77.00 -0.49 18650.00 -15.35 LME Tin 17910.00 -190.00 -1.05 19200.00 -6.72 LME Zinc 1824.25 -17.75 -0.96 1845.00 -1.12 SHFE Alu 15420.00 -65.00 -0.42 15845.00 -2.68 SHFE Cu* 54950.00 -230.00 -0.42 55360.00 -0.74 SHFE Zin 14610.00 -100.00 -0.68 14795.00 -1.25 ** 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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