Forexpros - Copper futures came under heavy selling pressure during European morning trade on Wednesday, November as growing fears over a possible Greece exit from the euro zone prompted investors to shun riskier assets ahead of a summit of European leaders later in the day. On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.431 a pound during European morning trade, tumbling 1.6%. It earlier fell by as much as 1.8% to trade at USD3.422 a pound, the lowest since January 10. Market sentiment was rattled after former Greek Prime Minister Lucas Papademos said that the debt-laden country had no choice but to stick with a painful austerity program or face a damaging exit from the euro zone. Papademos also warned that preparations for a Greek exit were being considered. Meanwhile, investors eyed a meeting of European leaders in Brussels later in the day, amid concerns over a divide between France's new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany. The ongoing Greece fears have roiled global equity and commodity markets since the start of May. Copper prices have fallen nearly 11% in the past three weeks. Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months. The ongoing Greece fears weighed heavily on the euro, which hit a four-and-a-half month low against the U.S. dollar. The dollar index, meanwhile hit its highest level since September 2010 earlier in the session. A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies. Concerns over the health of the global economy further kept prices on the back foot. The World Bank cut its economic growth forecast for China this year to 8.2% from 8.4% and urged it to rely on easier fiscal policy to boost consumption rather than state investment to lift activity. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Fears over a slowdown in copper demand from the Asian nation have been weighing on prices lately. Copper is sensitive to the global economic growth outlook because of its widespread uses across industries. Elsewhere on the Comex, gold for June delivery fell 1.3% to trade at USD1,556.35 a troy ounce, while silver for July delivery dropped 1.7% to trade at USD27.70 a troy ounce.

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