* LME copper recoups some early losses * News of downgrade to U.S. credit rating taken in stride * Shanghai base metals tumble on open, pare losses afterwards * S&P cuts U.S. credit rating, triggering weekend's global rout (Updates prices, adds quotes and details) By Carrie Ho SHANGHAI, Aug 5 (Reuters) - London copper extended losses after falling below $9,000 in early trade on Monday, following a global rout on news that rating agency Standard & Poor's had cut the United States's prized triple-A credit rating. Three-month copper on the London Metal Exchange fell 0.2 percent to $9,025 a tonne by 0354 GMT, after breaching the $9,000-mark at one point to $8,950, its lowest since June 27. It dropped 4.2 percent in the last session. The most-active October copper contract on the Shanghai Futures Exchange SCFcv1 opened down 1.6 percent at 67,460 yuan, catching up with London's previous losses. It fell 2.8 percent at one point to 66,630 yuan, also its lowest since June 27, before paring losses, to stand down 1.2 percent at 67,730 yuan by its midday close. All base metals on the ShFE fell at the open with the complex down 2.1 percent on a volume-weighted average basis. "I think we saw an early selloff but I think people are now taking a measured view of the downgrade and what it means, particularly for commodities. My view is that a U.S. downgrade has a limited long-term impact on commodity markets," said Citigroup analyst David Thurtell. "Yes, it can lead to short term weakness but I think that China by far the most important factor in the markets now. China is still growing strongly and will continue to need copper, aluminium, zinc and other commodities." S&P cut the U.S. credit rating to 'AA+' over the weekend, on concerns about the nation's budget deficits and climbing debt burden, capping a week that saw $2.5 trillion wiped off companies' values amid worries the United States is sliding back into recession. The global rout, exacerbated by Europe's unfolding crisis, represented the biggest weekly price decline for the MSCI All-Country World Index since early October 2008, according to Thomson Reuters Datastream. MOVES TO REIN IN EUROPEAN DEBT CRISIS Asian shares fell on Monday despite efforts by global policymakers to stem a collapse in investor confidence, but the euro jumped on hopes the European Central Bank will act to stop the euro zone debt crisis engulfing Italy and Spain. But S&P sought to assure global investors on Monday that its historic downgrade of the U.S. credit rating would have no immediate impact on sovereign borrowers in the Asia-Pacific. The U.S. dollar wallowed near a record low against the Swiss franc and fell against a basket of currencies, lending some support to commodity prices. Finance chiefs from the world's industrial powers pledged on Sunday to take whatever actions were needed to steady financial markets, spooked by the political wrangling in Europe and the United States over slashing their huge budget deficits. With the twin debt crises raging and stock markets plunging, the Group of Seven leaders said after a telephone consultation they intendED to stay in close contact and were "ready to take action to ensure stability and liquidity in financial markets". In separate efforts aimed at preventing panic, the European Central Bank signaled it would start buying Italian and Spanish debt, while U.S. Treasury Secretary Timothy Geithner said Treasury securities are just as strong now as before Friday's potentially damaging debt downgrade. Base metals prices at 0354 GMT Metal Last Change Pct Move YTD pct chg LME Cu 9025.00 -15.00 -0.17 -5.99 SHFE CU FUT OCT1 67730 -840 -1.23 -5.73 LME Alum 2410.00 10.00 +0.42 -2.43 SHFE AL FUT OCT1 17110 -375 -2.14 1.60 HG COPPER SEP1 408.75 -6.90 -0.72 -7.93 LME Zinc 2186.00 -14.00 -0.64 -10.92 SHFE ZN FUT OCT1 16650 -515 -3.00 -14.51 LME Nickel 22400.00 -105.00 -0.47 -9.49 LME Lead 2335.25 -24.75 -1.05 -8.42 SHFE PB FUT 16140 -200 -1.22 -12.04 LME Tin 23301.00 -1049.00 -4.31 -13.38 LME/Shanghai arb 131 Shanghai and COMEX contracts show most active months ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month Shanghai lead launched on March 24 (Reporting by Carrie Ho; Editing by Clarence Fernandez)

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