LONDON  - Copper edged up on Monday bolstered by a weak dollar, a decline in economic gloom in Europe, and better growth prospects in top consumer China, though gains were capped by worries about rising Chinese stockpiles.

The euro climbed to its highest against the dollar since February 2012, sustaining last week’s rally after European Central Bank President Mario Draghi gave a more optimistic outlook for the economic recovery. A weaker dollar makes commodities priced in the greenback cheaper for holders of other currencies such as the euro.  Global shares, seen by some as a proxy for growth, were near 18 month highs meanwhile, amid signs of a growth pickup in recent data from the United States and China, which boasted stronger-than-expected exports and imports in December.

“The fact that some macro data from China has been more constructive is a positive for the copper demand outlook. That’s key for the first few months but as the year unfolds people are anticipating an increase in copper supply,” said Macquarie analyst Duncan Hobbs. Three-month copper on the London Metal Exchange traded up 0.31 per cent to $8,070 a tonne in official midday rings, after falling as much as 1 per cent on Friday.  Latest LME data showed copper stocks in exchange registered warehouses fell by 725 tonnes to 329,725 tonnes, though they remain near their highest levels in about a year, indicating growing global supplies and still tepid demand.  Copper hit a 2-1/2-month high near $8,300 early in Jan as risk assets rose after the US averted a fiscal crisis of steep tax increases and spending cuts.