-- Comex July copper recently up 1.85 cents, or 0.5%, at $3.4595 a pound -- Copper trading remains tied to Europe's debt crisis -- Spain's borrowing costs rise; shares of bailed-out lender Bankia plunge on withdrawal report By Matt Day Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--A pause in the drum beat of worrying news concerning Europe's debt crisis brought some stability to the copper market on Thursday, with futures shuffling between slight gains and losses after hitting consecutive four-month lows. The most actively traded copper contract, for July delivery, recently traded up 1.85 cents, or 0.5%, at $3.4595 a pound on the Comex division of the New York Mercantile Exchange. Copper settled lower for four consecutive sessions, as investors dumped the growth-sensitive metal on the chance that Greece's political deadlock and the strain in Europe's financial sector could slam the industrial economy. Copper is sensitive to the economic outlook because of its widespread uses across industries, and the euro-zone members together are the second largest consumer of the metal behind China. The dollar has surged this month as investors sought a safe place to park cash during Europe's apparently worsening debt crisis. That's dragged on dollar-denominated commodities, including copper, by making the futures appear more expensive for buyers using other currencies. The currency was again higher on Thursday, with the ICE US Dollar Index touching a four-month high. "If anything, things seem to be getting worse," said INTL FCStone analyst Edward Meir, in a note. "The focus now seems to be reverting away from the political deadlock in Greece and towards the deteriorating rate situation in Spain." Copper futures rose in overnight trade, as traders saw a bargain in the metal's selloff, before erasing those gains as the euro hit fresh lows. Greece is heading for another election next month, putting the country's international bailout in jeopardy and adding pressure to Europe's fragile government debt markets. Spain's latest bond auction, held on Thursday, saw the country's borrowing costs rise. Moody's Investors Service reportedly told several Spanish banks that it will lower their credit ratings. A Spanish daily newspaper said clients of troubled Spanish lender Bankia withdrew more than EUR1 billion in deposits after the bank was bailed out by the government. Bankia shares slumped by more than 25% on Thursday. -By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com

Source