* Euro slips against dollar, euro zone debt fears persist * Copper stocks fall to lowest since Sept 2009 * COMING UP: U.S. pending home sales Dec at 1500 GMT By Harpreet Bhal LONDON, Jan 25 (Reuters) - Copper slipped from a four-month high on Wednesday, under pressure from a weak euro on concerns about the region's debt crisis, although expectations of U.S. infrastructure spending and data showing falling inventory levels limited further falls. Three-month copper on the London Metal Exchange was down 0.4 percent to $8,325 a tonne by 1019 GMT from Tuesday's close of $8,360, having earlier hit its highest since Sept. 19 at $8,455.25. The euro turned lower against the dollar, erasing gains from earlier in the session when data showed German business sentiment beat expectations by rising for a third month in a row in January. A strong dollar makes commodities priced in the U.S. unit more expensive for holders of other currencies. "This week we will be trading purely on euro zone news. Frustration is growing because an agreement is yet to be reached about Greece's debt talks," said Andrey Kryuchenkov, analyst at VTB Capital. "People are simply too concerned with the euro zone debt crisis so I don't expect sustained gains for metals from here." Trading volumes remained low, with top consumer China away. The Shanghai Futures Exchange is closed this week for the Lunar New Year holiday. Chinese financial markets will reopen on Monday, Jan. 30. In a boost to the metal used in power and construction, President Barack Obama proposed using half the money America will save from the end of its wars in Iraq and Afghanistan in high-speed rail lines and repairs to the nation's creaking roads and infrastructure. "It creates jobs, it creates growth, it boosts the economy. It's a smart move and one ultimately that will be good for the commodities market, because all the focus has been on emerging market demand," said Mark Pervan, head of commodities research at ANZ Research in Melbourne. Market focus now turns to the Federal Reserve, with the U.S. central bank expected to begin a new practice of announcing policymakers' interest rate projections when a two-day meeting ends later on Wednesday. FALLING STOCKS Large stock withdrawals in LME-monitored warehouses helped support copper, with the latest data showing inventories monitored by the LME dropped by 2,500 tonnes to 339,750 tonnes, its lowest level since September 2009. "The pace of this withdrawal is quite strong and that indicates there is steady spot demand," Kryuchenkov said. On the technical front, copper could break on the upside, a trader in London said, citing a widespread theory that Chinese copper traders were short, and with the metal trading near a 200-day moving average, which if triggered could send a buy signal to funds. "Many copper traders are convinced the Chinese are short and will be big buyers after the holidays, an added reason why copper is facing 8,500 and a big breakout," he said. A break above the 200-day moving average for the first time in around five months could spur fresh technical buys, traders said, but with China away, any advance would likely prove short-lived. In other metals, aluminium fell to $2,233 a tonne from a close of $2,239 on Tuesday, while zinc was at $2,128 from $2,125. Battery material lead slipped to $2,246.50 from $2,250 and stainless steel ingredient nickel was at $20,651 from $20,600. Tin was at $22,250 from $22,190. Metal Prices at 1019 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 380.30 -0.15 -0.04 444.70 -14.48 LME Alum 2231.75 -7.25 -0.32 2470.00 -9.65 LME Cu 8325.00 -35.00 -0.42 9600.00 -13.28 LME Lead 2237.75 -12.25 -0.54 2550.00 -12.25 LME Nickel 20636.00 36.00 +0.17 24750.00 -16.62 LME Tin 22150.00 -40.00 -0.18 26900.00 -17.66 LME Zinc 2125.25 0.25 +0.01 2454.00 -13.40 SHFE Alu 16395.00 30.00 +0.18 16840.00 -2.64 SHFE Cu* 60720.00 160.00 +0.26 71850.00 -15.49 SHFE Zin 15855.00 195.00 +1.25 19475.00 -18.59 ** 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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