MARKETS-METALS (UPDATE 4) * Rebound in euro seen as temporary given Greek debt woes * Shanghai copper stocks soar * Markets awaits slew of U.S. data including GDP numbers (Adds fresh comment/details, changes dateline from ) By Maytaal Angel LONDON, Feb 26 (Reuters) - Copper rose more than 2 percent on Thursday as a weaker dollar encouraged funds to buy, but lingering concerns over recovery prospects coupled with large rises in Shanghai stocks kept gains in check. Benchmark copper for three-months delivery on the London Metal Exchange traded at $7,105 a tonne at 1028 GMT from a close of $6,999 on Thursday. Prices of the metal used in power and construction hit a day's high of $7,165. The dollar fell versus the euro, making dollar priced metals cheaper for non-U.S. investors. But many in the market expect the single European currency to remain under selling pressure due to concerns about fiscal problems facing Greece. Also weighing on copper, Shanghai stocks soared 28 percent from two weeks earlier to 149,478 tonnes, the highest since September 2002, as large amounts of copper was moved out of bonded warehouses after last week's Lunar New Year holiday. "It's largely the dollar because on the whole inventory news is not positive. The market is floundering for direction," said Stephen Briggs, analyst at RBS Global Banking & Markets. Copper prices on the London Metal Exchange fell about 2 percent on Thursday on a strong dollar and disappointing U.S. jobless claims and durable goods orders data. The U.S. will release a batch of indicators later in the day, including fourth-quarter economic growth, February consumer sentiment and existing home sales for January, which should give further clues on the economic outlook. SEASONAL On the plus side, LME copper stocks fell 500 tonnes to total 549,725 tonnes, continuing a downtrend seen for the best part of the last week, and indicating demand for copper outside China might have started recovering. But analysts said the stock situation in China coupled with lower Chinese imports, is of greater concern to the market. China, the world's largest metals consumer, helped drive copper up 140 percent last with thanks to record import buying. Earlier this week, however, data showed China's refined copper imports fell to 196,926 tonnes in January, from 244,013 tonnes in December. "The seasonal rally may not be very visible this year, after copper prices made huge gains last year. Copper is bound to experience some consolidation," said a trader based in eastern China's Zhejiang Province. Aluminium was at $2,101.25 a tonne from $2,086. LME data showed stocks fell 4,525 tonnes to total 4.58 million tonnes, extending a downtrend linked to improved demand for the metal used in transport and packaging. LME zinc hit $2,192 a tonne earlier, up nearly 4 percent on the day, before easing to $2,175 versus $2,116. "There was some aggressive buying at the open in zinc and copper, in fact zinc has been trading more than copper so far. It's the golden godchild for Chinese speculators right now," said a senior LME dealer based in Sydney. Battery material lead was at $2,165 from $2,150, under pressure from a 2,050 tonne gain in LME stocks to 165,075 tonnes, and from the restart of Ivernia's Magellan mine in Australia. Tin was at $16,840 from $16,700, and nickelwas at $20,535 from $20,350. (Reporting by Maytaal Angel. Editing by William Hardy)

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