* Copper narrows losses as central banks cut rates * Earlier, metals fell more than 3 percent across the board * Fears of global recession grow (Recasts, updates prices, adds comments) By Anna Stablum LONDON, Oct 8 (Reuters) - Copper trimmed losses as central banks cut interest rates worldwide on Wednesday after the metal had fallen more than 7 percent on fears over the health of the global economy. Other base metals recovered from earlier sharp losses after the coordinated action by the central banks. [ID:nHKG77476] "The move that you have seen in metals is exactly what we can expect because everything has gone up," said analyst Gayle Berry at Barclays Capital. The U.S. Federal Open Market Committee, the policy-setting arm of the U.S. Federal Reserve, cut benchmark lending rates by half a percentage point to 1.5 percent in an action coordinated with other central banks. [ID:nNAT004445] "What you are seeing now is a bounce on the news but even if metals sustain the gains through the end of the day it is not really something that is going to mark a turnaround in the direction for prices," Berry said. LME copper MCU3 -- often seen as a key gauge of real economic activity -- fell 7.1 percent to the lowest level since March 2006 at $5,227 a tonne in early trade. But after the move by central banks at 1110 GMT the metal, mainly used in the construction and power industries, had narrowed losses to $5,370/5,390, down from $5,625 on Tuesday. "It's too early to say what will happen next but it's a step in the right direction," said Dan Smith, analyst at Standard Chartered. "The move will help to underpin commodity prices." Prices of metal for delivery in three months have fallen by 15 percent since the start of October and are down 40 percent since touching a record of $8,940 per tonne in July this year. Europe's top copper miner KGHM KGHM.WA expects its third quarter revenue to be down from a year-ago period and may cut its 2008 forecasts as demand for some copper products worsenened, its deputy chief said.[ID:nWAR007407] The International Copper Study Group (ICSG) said it anticipates a copper surplus of 100,000 tonnes in 2008. [nL884848] Anxiety about the health of the world economy grew overnight after remarks by Federal Reserve Chairman Ben Bernanke highlighting the fact that recent economic data and financial developments showed the outlook for growth had worsened. "The market is perceiving a global recession," analyst Robin Bhar at Calyon said. Aluminium MAL3 fell to a near three-year low of $2,230 a tonne before recovering to $2,310/2,315, up $7. Stocks of the metal in LME warehouses at more than 1.39 million are the highest since February 2004. Aluminium producer Alcoa Inc (AA.N: Quote, Profile, Research, Stock Buzz) said longer-term prospects for pricing and global demand are good despite measures to rein in capital expenses and review underperforming assets to combat softer demand and tighter margins.[ID:nL8622472] Tin MSN3 fell 7.4 percent to $15,000 in early trade, down from $16,200 on Tuesday. It was last at $15,300/15,500. Lead MPB3 was at $1,612/1,622, down $18 after touching a 3-months low of $1,570 and zinc MZN3 shed $30 to $1,520/1,535 after hitting a three-year low of $1,470. Nickel MNI3 fell to a 35-months low at $13,200 a tonne, down $1,000 or 7 percent. It was last at $13,500. The global nickel market will be in a 110,000 tonnes surplus in 2009, the International Nickel Study Group (INSG) said. [ID:nL8683406] Metal Prices at 1118 GMT Metal Last Change Pct Move End 2007 Ytd Pct move LME Cu 5425.00 -200.00 -3.56 6670.00 -18.67 SHFE Cu* 45720.00 -2920.00 -6.00 56880.00 -19.62 LME Alum 2310.00 7.00 +0.30 2403.00 -3.87 SHFE Alu* 14230.00 -240.00 -1.66 18180.00 -21.73 COMEX Cu** 254.45 0.00 +0.00 303.50 -16.16 LME Zinc 1520.00 -30.00 -1.94 2370.00 -35.86 SHFE Zinc* 12730.00 -115.00 -0.90 18950.00 -32.82 LME Nick 13500.00 -700.00 -4.93 26350.00 -48.77 LME Lead 1612.00 -18.00 -1.10 2550.00 -36.78 LME Tin 15325.00 -875.00 -5.40 16400.00 -6.55 ** 1st contract month for COMEX copper * 3rd contact month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Additional reporting by Julie Crust in London and Nick Trevethan in Singapore, editing by Peter Blackburn)

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