MARKETS-METALS (UPDATE 6) * For data on bank stress test results see: * Tin surges 6 percent, hits buy stops (Updates prices, adds comment) By Pratima Desai and Rebekah Curtis LONDON, July 23 (Reuters) - Copper rallied to a two-month high on Friday, helped by fund buying and with gains undisturbed as investors digested results of the European banks stress tests. Seven of 91 European banks failed stress tests and showed an overall capital shortfall of 3.5 billion euros, the organisers of the tests said. "The fact that it's held $7,000 is a good sign," David Thurtell, an analyst at Citi, said of copper after the stress tests results. "I think Europe seems to have got through this euro zone debt crisis relatively unscathed." Earlier, tin surged more than 6 percent to $19,750 a tonne, its highest since September 2008. Aluminium, lead and zinc rose to $2,070, $1,983.75 and $1,962 a tonne respectively, their highest since May. Benchmark copper on the London Metal Exchange rose to $7,090 a tonne, its highest since May 14, and was on course for its biggest weekly gain since February. The metal closed at $7,030 a tonne, from $7,010 a tonne at the close on Thursday, Tin closed at $19,495 from Thursday's last bid at $18,550. "It's more technical," a trader said of tin's move. "It's hit a massive number of stops," he said, adding the moves were exaggerated by the smaller size of the tin market relative to markets of other metals. UNUSUALLY UNCERTAIN Data showing a record jump in the German IFO index, a measure of business sentiment, in July to its highest level in three years helped soothe concerns about economic growth. But the data has not really alleviated concerns about longer-term economic and demand growth in the United States, the world's largest economy, and Europe. Earlier this week U.S. Federal Reserve Chairman Ben Bernanke added to the unease when he described the outlook as "unusually uncertain." Bernanke also said the Fed stands ready to ease monetary policy further if the budding U.S. economic recovery withers. "Economic indicators are pointing towards potential European and U.S. economic slowdown," said John Meyer, analyst at investment bank Fairfax. "Copper output from mines is slowing because of lower grade ores and the Chinese are absorbing a greater proportion of copper concentrate." In contrast, there are no supply problems in aluminium, used extensively in the transport and packaging industries. It was last quoted at $2,030/2,030.5 a tonne from Thursday's last bid at $2,044 a tonne. The world's top aluminium producer, Russia's UC RUSAL , said it had restarted operations at its Windalco Ewarton alumina plant in Jamaica that was mothballed in 2009 due to the economic crisis. "The positive trends in the global aluminium market, alongside agreements with the Jamaican government and the plant's contractors, were important factors, which have helped to improve Ewarton's operational cost efficiency, thereby enabling RUSAL to restart the refinery," it said in a release. Zinc was at $1,910 a tonne from $1,948.5 at the close on Thursday, lead was at $1,979 a tonne from $1,940 and nickel was at last quoted at $20,350/20,355 from $20,250. Prices at 1631 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Percent Move End 2009 Ytd Percent move COMEX Cu 318.45 2.40 +0.76 334.65 -4.84 LME Alum 2030.00 22.00 +1.10 2230.00 -8.97 LME Cu 7023.00 13.00 +0.19 7375.00 -4.77 LME Lead 1961.00 21.00 +1.08 2432.00 -19.37 LME Nickel 20275.00 25.00 +0.12 18525.00 9.45 LME Tin 19250.00 1010.00 +5.54 16950.00 13.57 LME Zinc 1917.00 -31.50 -1.62 2560.00 -25.12 SHFE Alu 15275.00 230.00 +1.53 17160.00 -10.98 SHFE Cu* 55400.00 1470.00 +2.73 59900.00 -7.51 SHFE Zin 15885.00 285.00 +1.83 21195.00 -25.05 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Editing by Anthony Barker)

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