* LME tin stocks fall to 2-1/2 year low * Spot demand from China declines * Coming next: U.S. jobs data; 1330 GMT By Silvia Antonioli LONDON, Dec 7 (Reuters) - Copper rose on Wednesday as investors placed optimistic bets ahead of a crucial EU summit on Friday that may help tackle a deepening euro zone debt crisis and on expectations of an interest rate cut from the European Central Bank. Investors hoped that EU leaders, who will meet for a summit on Dec. 9, will take tougher measures to resolve the debt crisis which has depressed economic growth and metals demand prospects in the last few months. There were also expectations that the European Central Bank (ECB) will announce a rate cut on Thursday, which would boost liquidity in the banking sector and calm markets. Benchmark copper on the London Metal Exchange rose almost 1 percent to $7,893.25 a tonne by 1050 GMT, from a $7,835 close on Tuesday . "This is risk-on positioning ahead of the very crucial events of the next few days which may be very positive for copper," said Nick Moore, an analyst at RBS. "People are looking for an ECB rates cut which should provide at least stabilization and would probably improve the European outlook." U.S. Treasury Secretary Timothy Geithner meets French President Nicolas Sarkozy in Paris on Wednesday to press for decisive steps towards resolving Europe's deepening debt crisis. Geithner said the European Central Bank had to play a major role in the resolution of the debt crisis. TIN INVENTORIES An improvement of the European debt situation would be bullish for most commodities and copper would benefit more than others due to a significant production shortfall this year, analysts said. About 1 million tonnes of copper will be disrupted this year and this compares with mine production of about 16 million tonnes last year. Some concerns remained however about the economic slowdown in China, the top consumer of copper, which accounts for about 40 percent of the metal's global consumption. China's annual rate of export growth slowed in November versus October, Vice Commerce Minister Chong Quan said, confirming market expectations that deteriorating external conditions are dragging on the world's No. 2 economy. Inventories of copper in Asian warehouses monitored by the London Metal Exchange and in warehouses monitored by the Shanghai Futures Exchange have been falling in the last few months but the withdrawals pace has slowed down recently pointing to a decline in spot demand from Asia. Chinese importers have cut purchases of copper in bonded warehouses in Shanghai this week because of weaker domestic demand, caution over prices and slower processing by local customs offices, traders said on Wednesday. Tin stocks on the other hand, continued to fall significantly, pointing to increasing demand for the metal used for soldering. Inventories of tin in LME-monitored warehouses fell below 12,000 tonnes, their lowest since April 2009 and almost 50 percent down from last August. "We attended ITRI's inaugural Investing In Tin seminar... Presentations on the market outlook highlighted that supply is still constrained," Macquarie said in a note. "In the short term, more supply can come only from Indonesia, and this will be subject to higher prices than prevail today in what is a deficit market." Tin was at $20,452 from a last bid of $20,300 on Tuesday while zinc , used to galvanize steel, was at $2,047.75 from a $2,045 close. Battery material lead was at $2,134 from $2,125 and aluminium was at $2,127.25 from $2,113. Nickel was at $18,465 from $18,445. Metal Prices at 1113 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 357.95 1.10 +0.31 444.70 -19.51 LME Alum 2123.00 10.00 +0.47 2470.00 -14.05 LME Cu 7882.50 47.50 +0.61 9600.00 -17.89 LME Lead 2133.25 8.25 +0.39 2550.00 -16.34 LME Nickel 18440.00 -5.00 -0.03 24750.00 -25.49 LME Tin 20452.00 552.00 +2.77 26900.00 -23.97 LME Zinc 2043.50 -1.50 -0.07 2454.00 -16.73 SHFE Alu 16195.00 25.00 +0.15 16840.00 -3.83 SHFE Cu* 58360.00 690.00 +1.20 71850.00 -18.78 SHFE Zin 15815.00 145.00 +0.93 19475.00 -18.79 ** 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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