Copper fell from a five-month high as declining equity markets spurred concern that a recent rally may have been overdone, given the slumping global economy. European stocks erased earlier gains and U.S. stock futures fell on concern that worsening financial conditions will persist and hurt company earnings. Copper surged 9 percent last week as the Standard & Poor’s 500 Index jumped 3.3 percent on speculation that the worst of the global recession had passed. “People had gotten pretty excited last week about the economy,” said Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida. “The reality is not that the economy is good. It’s just not as bad as people had feared. We could see copper pull back this week as some of that optimism dies out.” Copper futures for May delivery lost 5.25 cents, or 2.6 percent, to $1.948 a pound at 9:18 a.m. on the New York Mercantile Exchange’s Comex division. Earlier, the price touched $2.037, the highest for a most-active contract since Oct. 30 On the London Metal Exchange, copper for delivery in three months dropped $14, or 0.3 percent, to $4,287 a metric ton ($1.95 a pound). The price reached a record $8,940 on July 2.

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