* Stronger dollar weighs * Copper inventories rise but aluminium stocks dip * U.S. consumer confidence slips in October (Updates to add table at bottom) By Maytaal Angel and Michael Taylor LONDON, Oct 27 (Reuters) - Copper edged lower on Tuesday as U.S. equity markets faltered after weak consumer confidence data, the dollar rebounded and rising LME inventories fuelled demand concerns. Copper for three-month delivery MCU3 on the London Metal Exchange traded at $6,570 a tonne at 1507 GMT from $6,613 at the close on Monday, when the metal used in power and construction touched a 13-month high of $6,732. "Everything has been eclipsed by the consumer confidence data," said Peter Fertig, analyst at Quantitative Commodity Research. "It's not a harbinger that consumer spending is going to decline, nevertheless the stock market reaction has been quite negative." U.S. stocks fell in choppy trading on Tuesday as a worse-than-expected consumer confidence report overshadowed earlier data that showed home prices rose for the fourth-straight month. Some stock indices later recovered their losses, but remained weak. [.N] The dollar rose to two-week highs against the euro in response to the confidence data, as investors flocked to the perceived safety of cash. A stronger dollar makes dollar-priced metals more expensive for non-U.S. investors. [USD/] Other U.S. data was mixed. Two separate reports showed sales at retailers have picked up, but the Richmond Fed's manufacturing index fell in October from September. [ID:nN27236301] [ID:nTAR001675] Copper was supported on Monday by data showing hefty imports into China, the world's largest copper consumer, in September. But some analyst doubt the strong buying will continue through the year end. [ID:nBJI000173] "The rate of (Chinese) buying seems likely to slow now into the year end and with restocking elsewhere remaining lacklustre the line of least resistance for the short term would appear to be to the downside," RBC Capital Markets said in a note. Elsewhere, investors were eyeing LME stocks, which continue to rise, indicating demand has yet to recover outside China. The latest data showed stocks rose 1,800 tonnes to total 370,650 -- their highest level since mid May. STIMULI TO END? India's central bank is starting to withdraw some liquidity support measures taken when the global economic crisis hit, sparking worries that central banks elsewhere will do the same. [ID:nDEL485971] "Today's India news supports the view that some countries are clearly past the worst and moving to contain any potential inflation breakout," said David Thurtell, an analyst at Citigroup. "A tightening of monetary policy in the major economies will eventually hurt metals demand." In other metals, aluminium MAL3 fell $11 to $1,986, having earlier touched $2,030, its highest in over two months. LME stocks of the metal, used in transport and packaging, fell 4,475 tonnes to 4.57 million tonnes, maintaining a slow retreat away from record levels which began in mid September. Aluminium Corp of China Ltd (Chalco) (2600.HK: Quote, Profile, Research), the world's most valuable aluminium maker, returned to profit in the third quarter on recovering demand and prices for the metal. [ID:nHKG177802] Analysts said trend-following hedge funds such as CTAs or Commodity Trading Advisors are rumoured to be piling into aluminium. Steel-making ingredient nickel MNI3 traded at $18,650 from $18,650 while battery material lead MPB3 was at $2,278 from $2,310. Zinc MZN3 traded at $2,269.50 a tonne from $2,315 and tin MSN3 was at $15,200 from $15,255. Zinc touched a 17-month high at $2,365.75 on Monday as analysts cited improving physical demand. [ID:nLN320526] Metal Prices at 1530 GMT Metal Last Change Pct Move End 2008 Ytd Pct move COMEX Cu 298.25 -1.70 -0.57 139.50 113.80 LME Alum 1985.00 -13.00 -0.65 1535.00 29.32 LME Cu 6567.00 -46.00 -0.70 3060.00 114.61 LME Lead 2272.00 -88.00 -3.73 999.00 127.43 LME Nickel 18675.00 25.00 +0.13 11700.00 59.62 LME Tin 15075.00 -180.00 -1.18 10700.00 40.89 LME Zinc 2272.00 -43.00 -1.86 1208.00 88.08 SHFE Alu 15220.00 -50.00 -0.33 11540.00 31.89 SHFE Cu* 51160.00 -700.00 -1.35 23840.00 114.60 SHFE Zin 17145.00 -115.00 -0.67 10120.00 69.42 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Editing by Sue Thomas)

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