MARKETS-METALS (UPDATE 3) * Dollar bounces, equities fall, denting sentiment * Sentiment gloomy, further falls expected * Premium on tom/next aluminium jumps to $5.5 * Coming up: U.S. July existing home sales, at 1400 GMT (Adds fresh comment/details, changes dateline from Singapore) By Maytaal Angel LONDON, Aug 24 (Reuters) - Copper hit its lowest in more than a week on Tuesday as a stronger dollar and weaker equities weighed and players remained nervous about the outlook for demand given uninspiring economic data. Benchmark copper on the London Metal Exchange traded at $7,183 a tonne at 0944 GMT from a close of $7,255 on Monday. Earlier the metal used in power and construction hit its lowest since Aug. 13 at $7,176.50. "There's jitters about the outlook for growth, equities are falling and we've had a bout of risk aversion which is continuing. I think we'll head back to $6,500 over the next three to four weeks," said Credit Agricole analyst Robin Bhar. "Sentiment is gloomy, people are looking at news flow, data, coming out as weak." The dollar hit a six-week high versus the euro earlier, making dollar priced metals costly for European traders, while equities inched lower in Europe, denting sentiment. Looking ahead, U.S existing home sales data for July later this session and GDP numbers on Friday will give further clues on the pace of recovery. "Prices are off slightly today in anticipation that housing data ... will record a fall from last month, diminishing demand prospects for copper in the world's second-largest user," said Fairfax in a note. LME copper stocks rose for a second day running, jumping 1,625 tonnes to 403,825 tonnes. Overall stocks are still down some 150,000 tonnes since a mid-February peak, in part because of strong buying from top consumer China. Implied copper demand in China rose 1.8 percent in July from a year earlier, Reuters calculations based on official data showed on Tuesday, helping limit losses in copper. Also helping limit decline, Eurozone industrial orders surged in June while the supply outlook tightened after Chilean miner Antofagasta trimmed its annual production target. PREMIUM In other metals traded, aluminium, used in transport and packaging, was at $2,021 a tonne from $2,040, having earlier hit its lowest since July 22 at $2,010. Aluminium Corp of China Ltd, the top producer of the lightweight metal, said it aims to cut its second half output by 2.4 percent versus the first half, as a supply glut hurt its second-quarter earnings. Separately, traders are watching premium or backwardation of around $6 on LME aluminium to be delivered on Wednesday and bought back on Thursday -- known as the tom/next, and often used to lend metal to entities who are short. The backwardation has emerged because of two significant positions holding between 30 and 40 percent of aluminium stock warrants, cash and tom contracts, leaving some players without metal and forced to lend at a high cost. The increase in the nearby prices has also tightened the discount for cash over three-month aluminium prices to around $1 currently from $33 in early June. "Shorts are having to cover against cash dates coming up. I think it will happen again next month because the August September spread remains tight (but) when the shorts are covered the tightness will disappear," said Bhar. Tin was at $20,340 a tonne from $20,460, having earlier hit a near two week low of $20,300. The soldering metal has been one of the best performers of late, underpinned by ongoing tightness in supply that has pushed the premium or for cash tin over the three month price to $45. Last week it surged as high as $200. Elsewhere, zinc was at $1,992 from $2,044, having earlier hit its lowest since July 30 at $1,989, while battery material lead was at $2,018 from $2,048, having earlier hit its lowest since July 29 at $2,015. Stainless steel making ingredient nickel was at $20,745 from $21,200, having earlier hit its lowest since July 30 at $20,705. Metal Prices at 0958 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 324.65 -4.50 -1.37 334.65 -2.99 LME Alum 2015.00 -25.00 -1.23 2230.00 -9.64 LME Cu 7170.00 -85.00 -1.17 7375.00 -2.78 LME Lead 2013.00 -35.00 -1.71 2432.00 -17.23 LME Nickel 20710.00 -490.00 -2.31 18525.00 11.79 LME Tin 20225.00 -235.00 -1.15 16950.00 19.32 LME Zinc 1980.00 -64.00 -3.13 2560.00 -22.66 SHFE Alu 15305.00 -25.00 -0.16 17160.00 -10.81 SHFE Cu* 56920.00 -270.00 -0.47 59900.00 -4.97 SHFE Zin 16640.00 -280.00 -1.65 21195.00 -21.49 ** Benchmark month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Reporting by Maytaal Angel; Editing by Sue Thomas)

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