Reuters reported that London copper rose for a second session supported by promising US housing data that calmed worries about the state of the world's top economy although thin volumes suggest caution ahead of the European Union Summit later this week.

Fundamentals;
1. Three month copper on the London Metal Exchange rose 0.8% to USD 7,392.50 per tonne by 0140 GMT.

2. The most active October copper contract on the Shanghai Futures Exchange moved up 0.5 percent to CNY 54,310 per tonne snapping two consecutive sessions of losses.

3. London copper rose on Monday for the first time in 4 days on an improved demand outlook in the United States after data showed new home sales surged in May to a two year high.

4. But the grim global economic growth outlook amid the euro zone's debt crisis is expected to cap gains in riskier assets. All eyes are on this week's European Union summit with high profile politicians and corporate leaders around the world urging European leaders to produce substantive measures to tackle the region's debt crisis.

5. German Chancellor Ms Angela Merkel however dashed any lingering hope in financial markets that Europe would issue common euro zone bonds to underpin its single currency. Sharing debt liability within euro zone was economically wrong and counterproductive.