Copper fell to a nine-month low on the London Metal Exchange on speculation Europe’s debts are hampering growth, curbing metals demand. European manufacturing contracted again this month, economists said before a purchasing managers index report this week. Europe’s economy is cooling as governments toughen spending cuts to narrow budget deficits. In China, home prices in all 70 cities monitored rose for the first time in a year, the statistics bureau said yesterday. “That China property price news over the weekend possibly sparked fears of more Beijing tightening, or no loosening as some may have been factoring in,” said David Thurtell, an analyst at Citigroup Inc. in Singapore. “Poor Eurozone manufacturing PMI’s would obviously be a bad look for the LME complex.” Copper for delivery in three months fell $296, or 3.4 percent, to $8,400 a metric ton at 10:29 a.m. on the LME, and earlier today dropped to $8,395.25, the lowest price since Dec. 1. Prices have dropped 18 percent from the record $10,190 a ton on Feb. 15. The euro-zone purchasing managers manufacturing index fell to 48.5 this month from 49 in August, according to the median of 34 economist estimates compiled by Bloomberg News. A reading below 50 indicates contraction. The London-based Markit Economics report is set for release on Sept. 22. Sixty percent of equity investors see euro-area banking issues as the greatest threat to their markets and 70 percent of currency clients say euro developments will be the most important drivers of their markets, Barclays Capital said, citing a client survey. Europe consumes about a fifth of the world’s copper, according to Barclays. China is the biggest buyer. Inventories of copper in warehouses monitored by the LME rose 0.7 percent to 469,125 tons, the most since July 27. Aluminum fell 1.6 percent to $2,343 a ton, lead declined 2.5 percent to $2,305 a ton and nickel slumped 2.3 percent to $21,025 a ton. Tin dropped 1.5 percent to $22,745 a ton and zinc was down 2.4 percent at $2,108 a ton. To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@abloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.

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