* Equities rise to boost market confidence * U.S. retail sales jump but consumer confidence slumps (Updates prices) By Michael Taylor and Rebekah Curtis LONDON, July 14 (Reuters) - Copper scaled one-week highs on Tuesday, as the dollar weakened and gains in equities reflected a more upbeat mood on prospects for demand and economic growth. Copper for three month delivery on the London Metal Exchange was at $5,010 a tonne at 1431 GMT from $4,895 at the close on Monday. The metal used in power and construction, up about 60 percent year-to-date, hit a session high of $5,025 in sympathy with a rally in European equities. "Metals are holding really well," said Andrey Kryuchenkov, analyst at London's VTB Capital. "Copper has a very good chance of holding above 4,600 this summer. Market players are gaining confidence that the global economy is improving, but analysts warn broadly that it is too early to bet that a sure recovery has begun. "If data doesn't deteriorate, copper is looking good, "Kryuchenkov said, but added it was market sentiment, not real demand, driving prices. "The upside is very limited because there is no real fundamental demand at the moment." A weaker U.S. currency gave support, making dollar-priced metals less expensive for holders of other currencies. Strong profits from U.S. bank Goldman Sachs and rising U.S. retail sales fanned market optimism. But downbeat numbers continue to temper the better data, with a survey showing U.S. consumer confidence slumped in July. The premium for cash copper versus the three-month contract was at around $5 a tonne. This is the first time there has been a premium since the beginning of May, suggesting tightness in the nearby market. Copper stocks dipped 325 tonnes to 256,900 tonnes -- visiting levels last seen in November. Looking longer term, world copper prices could average about $2 a pound, or some $4,400 a tonne in 2009, Chile's Mining Minister Santiago Gonzalez said, signalling greater market stability. ALUMINIUM RISES Among other industrial metals, aluminium rose to $1,600 from $1,561. LME inventories remain at record levels above 4.4 million tonnes. With Chinese stockpiling slowly appearing to fade, the advancement of the summer lull and no real upturn in demand, some analysts expect industrial metals to come under pressure. "We are now about 50 percent of the way through a summer correction that will focus on three areas of the market: high beta, commodities, and growth stories," Henry McVey, head of global macro and asset allocation for Morgan Stanley Investment Management, said in a note. "Our models show that things are over-extended and that we should expect further retracement." Steel making ingredient nickel was at $15,475 from $14,725 while battery material lead was at $1,598 from $1,555. Zinc added $1,492 a tonne from $1,440. Tin was at $12,851 from $12,300. Worries about tin supplies persisted, due to the backwardation on the September-December 2009 period, which has seen September trade at a significant premium to December. There is growing concern over the scale of long positions developing in the tin market, compared with the amount of available metal stored in LME warehouses. The falling premium in the September-December spread has fallen from $850 a tonne earlier in the week, to about $450. Metal Prices at 1432 GMT Metal Last Change Percent Move End 2008 Ytd Percent move COMEX Cu 227.20 5.90 +2.67 139.50 62.87 LME Alum 1594.00 33.00 +2.11 1535.00 3.84 LME Cu 5003.00 108.00 +2.21 3060.00 63.50 LME Lead 1590.00 35.00 +2.25 999.00 59.16 LME Nickel 15450.00 725.00 +4.92 11700.00 32.05 LME Tin 12900.00 600.00 +4.88 10700.00 20.56 LME Zinc 1486.00 46.00 +3.19 1208.00 23.01 SHFE Alu 13395.00 50.00 +0.37 11540.00 16.07 SHFE Cu* 39790.00 700.00 +1.79 23840.00 66.90 SHFE Zin 12895.00 195.00 +1.54 10120.00 27.42 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Editing by Keiron Henderson)

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