* Dollar inches up, European shares supported by Greek deal * Coming up: Fed Chair testifies on policy at 1500 GMT (Adds official midday prices) By Maytaal Angel LONDON, Feb 24 (Reuters) - Copper rose on Tuesday as panic over Greece abated while the market waited to see if Chinese buyers would return in force after a holiday and for clues from the U.S. central bank about the timing of rate rises. Greek shares outperformed flat European indexes after Athens sent a list of economic reforms to international partners that was a "a valid starting point" for talks over its bailout, according to a European Commission source. Weighing on copper, the dollar rose versus a basket of currencies on expectations that Federal Reserve Chair Janet Yellen would keep the bank nudging towards U.S. rate increases when she testifies before Congress on Tuesday. A stronger dollar makes dollar-priced metals such as copper more expensive for European and other non-U.S. investors. Three-month copper on the London Metal Exchange traded up 0.69 percent in official midday rings to $5,710 a tonne. Prices have risen since dipping below $5,400 in mid-January, but have struggled to gain steam. "Buyers aren't prepared to chase the market. They want to see whether China comes back with a spring in its step or not," said William Adams, head of research at Fast Markets. He was more upbeat, however, over the longer term: "Fundamentals are not that bearish. We were looking at a 200,000 tonne surplus this year that could easily disappear with supply disruptions. Then you've got a market that's balanced, with relatively low stocks and a relatively low price." In top copper consumer China, physical traders expected only light buying into next week as investors filter back slowly from the Lunar New Year holiday. China's stock, bond, foreign exchange and commodity futures markets resume trade on Feb. 25. "While the price is still relatively undervalued, I don't think it will be enough to entice the Chinese back," said strategist Daniel Hynes of ANZ in Sydney. In other metals, overcapacity in China's aluminium sector has depressed domestic prices and is undercutting premiums, the surcharge for physical metal, in global markets as China-based traders step up semi manufactured exports. "During Chinese New Year, I got some orders from my clients, they all want to short," said one trader. Aluminium traded up 0.95 percent at $1,808 a tonne in rings, but has lost some 2.5 percent so far this year, while zinc was last bid up 0.83 percent at $2,063 a tonne. Lifting zinc, daily LME data showed stocks of the metal dropped 4,400 tonnes to 572,400 tonnes, their lowest level since May 2010 and down about 17 percent this year. MZN-STOCKS Lead was last bid up 0.82 percent at $1,779 a tonne, tin traded up 0.56 percent at $18,100 a tonne while nickel traded up 1.10 percent at $14,280 a tonne.

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