* Falls in equities weigh, market awaits data

* Shanghai copper stocks down, LME inventories up

* Coming up: U.S. Q2 gross domestic product; 1230 GMT

(Recasts, updates prices and comments, previous SHANGHAI)

By Humeyra Pamuk

LONDON, July 30 (Reuters) - Copper slipped on Friday,
dragged down by falling equities and as investors await key U.S.
data, which is expected to give more clues about the health of
the major metals consumer.

An improvement in risk appetite over the past couple of
weeks has offset uninspiring economic data from the United
States and helped copper prices, which are on course for their
biggest monthly gain since last August.

European shares edged down with concerns over U.S. economic
growth and downbeat comments from a Federal Reserve official
prompting investors to stay cautious. Chinese stocks, which
copper tends to follow, ended lower.

Copper for three-months delivery on the London Metal
Exchange was at $7,191.50 a tonne by 0857 GMT, versus $7,231 a
tonne on Thursday, when it touched a three-month high.

The metal, used in construction and wiring, is set to rise
over 10 percent in July from a month earlier.

"There's some key data out today from the United States and
Chinese PMI over the weekend, which is going to help set the
tone," said Daniel Smith analyst at Standard Chartered.

The U.S. GDP data is expected to show growth of 2.5 percent
for the world's largest economy in the quarter ended June. The
data could have an impact on the dollar, which fell against the
yen. For a preview on data, see:

China's official PMI is likely to have eased to a 17-month
low in July as policies to curb lending and rein in the property
market weigh on manufacturing. For a preview, click on:

"The possibility that China will reaccelerate in the months
ahead -- that's what everybody's gambling on I think," he said.

$7,500 KEY RESISTANCE

As the world's biggest copper consumer, demand from China
has buoyed copper prices in 2009, helping them more than double.

In the physical market, traders say, Chinese merchants are
keen to build copper stocks in the next few months through
bargain-hunting, fed by expectations that term premiums to China
for shipments next year will rise.

"We'll see consolidation around $7,200 today. If prices can
hold steady above that level, we'll see further rise next week,
but $7,500 will be a key resistance level," said a
Shanghai-based trader.

LME copper stocks rose by 1,975 tonnes on Friday, but
the ratio of cancelled warrants, or materials tagged for
delivery, stood at 7.9 percent, indicating active demand.

Copper inventories in warehouses monitored by the Shanghai
Futures Exchange fell 8 percent from a week earlier, the
exchange said.

In industry news, miner Anglo American reinstated dividends
but warned about delays and higher costs at its key iron ore
project in Brazil after first-half profit doubled on higher
prices.

LME aluminium was at $2,099 a tonne from $2,093 a tonne.

Battery material lead was at $2,030 a tonne, versus $2,050 a
tonne, while tin was at $19,500 a tonne from $19,600. Nickel
dropped to $20,550 from $20,675 a tonne.

Zinc was at $1,971 a tonne from Thursday's $1,990 a tonne.
Metal Prices at 0857 GMT
Metal Last Change Percent Move End 2009
Ytd Percent

move
COMEX Cu 324.00 0.00 +0.00 334.65 -3.18
LME Alum 2094.00 1.00 +0.05 2230.00 -6.10
LME Cu 7190.00 -41.00 -0.57 7375.00 -2.51
LME Lead 2026.00 -24.00 -1.17 2432.00 -16.69
LME Nickel 20475.00 -200.00 -0.97 18525.00 10.53
LME Tin 19450.00 -150.00 -0.77 16950.00 14.75
LME Zinc 1965.00 10.00 +0.51 2560.00 -23.24
SHFE Alu 15345.00 -40.00 -0.26 17160.00 -10.58
SHFE Cu* 56270.00 50.00 +0.09 59900.00 -6.06
SHFE Zin 16165.00 -70.00 -0.43 21195.00 -23.73
** 1st contract month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07
(Additional reporting by Rujun Shen in Shanghai, Editing by
Alison Birrane)