By Michael Taylor LONDON, Oct 23 (Reuters) - Copper climbed to a fresh one-year high on Friday, as equities marched higher on improving corporate earnings and analysts warned prices had over run weak fundamentals. Copper for three-month delivery MCU3 on the London Metal Exchange rose to $6,655 a tonne in rings from $6,585 at the close on Thursday. The red metal used in power and construction earlier touched $6,686 -- a level last seen on Sept 29, 2008 -- and is on course for its biggest weekly gain since July. "Metals continue to trade in line with the broader market and equities sentiment," said Andrey Kryuchenkov, analyst at VTB Capital. Global equity markets have risen over the last few days as a flurry of improving corporate earnings has helped boost economic sentiment and offer renewed hope for future base metals demand. Also lending support was an under-pressure dollar, as a weaker U.S. currency makes commodities priced in dollars less expensive for holders of other currencies. [USD/] Analysts were cautious, suggesting prices had risen too high against a backdrop of rising inventories even though demand for industrial metals was expected to rise in 2010. LME copper stocks continue to climb, indicating demand has yet to recover outside China, the world's largest metals consumer. Latest data showed inventories rose 3,000 tonnes to total 367,075, their highest level since mid-May and a rise of about 40 percent since July. Also dampening underlying sentiment was Britain's economy, which contracted unexpectedly in the third quarter of this year, squashing hopes of an end to the downturn. [ID:nONS004554] Investors will now look to U.S. existing home sales at data 1400 GMT for market direction.

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