* Copper hit one-month low in previous session * Italy asks China to buy its bonds -FT * Coming up: U.S. Federal budget, Aug; 1800 GMT LONDON, Sept 13 (Reuters) - Copper traded steady on Tuesday, trimming earlier gains as markets remained fearful about Europe's deteriorating sovereign debt crisis. The metal used in power and construction fell to a one-month low in the previous session on fears over Europe's debt problems and global growth. But the three-month contract on the London Metal Exchange (LME) rose to $8,880 a tonne on Tuesday, bouncing off Monday's low of $8,620, its lowest level since Aug. 11. By 0932 GMT, it traded at $8,775 versus Monday's close of $8,754.5 a tonne. "(Metals) are following the turnaround on the equity markets," said Eugen Weinberg of Commerzbank in Frankfurt. "There is not much movement based on fundamentals and metals are trading as a complex." World stocks and the euro fell after a report cast doubt on the idea China would provide financial support to Italy, leaving investors focussed on growing risks to European banks and the euro. A Financial Times report that Italy had asked China to buy its debt had helped stocks recover some ground earlier but a second report poured cold water on those expectations, saying it was doubtful China would buy Italian bonds. European markets have taken a hammering from growing expectations of a Greek debt default, worries over French banks due to their holdings of debt and renewed rises in Italian bond yields. DEMAND OUTLOOK U.S. Treasury Secretary Timothy Geithner will make a one-day trip to Poland this week for an unprecedented meeting with euro zone finance ministers as growing fears of a potential Greek debt default rip into Europe's banking sector. Greece's ability to meet its deficit goals is in doubt as workers there threatened to sabotage a new property tax decided by the government, ignoring warnings that Athens will run out of cash next month. There are also worries that weak economies abroad will hit China's economic growth, as underlined by a fall in the new export orders subindex of the official PMI, which fell to 48.3 in August. China is the world's top consumer of copper and a major user of iron ore and other metals. Copper stocks in LME-approved warehouses rose 875 tonnes to 466,000 tonnes, about a third higher than in December 2010, data showed. MCU-STOCKS "... The deteriorating economic climate and potential for another crisis to unfold bodes ill for the outlook for demand," Basemetals.com wrote in a note. "As such, we feel the down trends in the metals will continue and it will only be a question of time before prices break below the August lows." Among other metals, aluminium traded at $2,381 a tonne from $2,372 a tonne. Tin traded at $23,500 from $23,450 a tonne, and zinc was at $2,202.25 from $2,214 a tonne. Battery material lead traded at $2,410 from $2,423 a tonne and nickel was at $21,430 from $21,600 a tonne. Metal Prices at 0936 GMT Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T Metal Last Change Pct Move End 2010 Ytd Pct move COMEX Cu 396.00 0.45 +0.11 444.70 -10.95 LME Alum 0.00 -2372.00 -100.00 2470.00 -100.00 LME Cu 8754.50 0.00 +0.00 9600.00 -8.81 LME Lead 2423.00 0.00 +0.00 2550.00 -4.98 LME Nickel 21575.00 -25.00 -0.12 24750.00 -12.83 LME Tin 23445.00 -5.00 -0.02 26900.00 -12.84 LME Zinc 2213.00 -1.00 -0.05 2454.00 -9.82 SHFE Alu 17390.00 -95.00 -0.54 16840.00 3.27 SHFE Cu* 66310.00 -1310.00 -1.94 71850.00 -7.71 SHFE Zin 16945.00 -180.00 -1.05 19475.00 -12.99 ** 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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