Copper fell more than 4 percent on Monday, as fears a deadly flu outbreak could reach pandemic proportions served a new blow to equity and commodity markets battling economic turmoil. Copper for three-months delivery MCU3 on the London Metal Exchange was quoted at $4,305/4,306 a tonne in official rings from $4,470 a tonne on Friday when it rose 3 percent. Battery material lead MPB3 fell 5 percent to a day's low of $1,362 a tonne from $1,435 a tonne, and was at $1,361 in official rings. Nickel MNI3 fell more than 4 percent to trade at $11,000/11,005 from $11,550, and hit a day's low of $11,050 a tonne. "It's fears over the global economy and risk aversion from this news over swine flu," said Leon Westgate, an analyst at Standard Bank. Fears of a global pandemic of swine flu, which first emerged in Mexico, grew over the weekend with new infections in the United States and Canada discovered on Sunday, and as millions of people in Mexico hid indoors to avoid a virus that has already killed more than 100 people. [ID:nN26482522] A pandemic would deal a major blow to a world economy already suffering its worst crisis in decades, and experts say it could cost trillions of dollars. European shares shed more than 1 percent, while Asian stocks slipped about 2 percent on news of the flu outbreak. [MKTS/GLOB] "Investors in Asia are all the more aware of the potential damage after the outbreak of SARS in Hong Kong six years ago hobbled the city and regional economy, as well as flare-ups of bird flu in the past few years," RBC Capital said in a note. Meanwhile, concerns about supply were reflected in the premium for cash over three-month contracts for copper, last indicated at $12 to $16 backwardation. [ID:nLR355981] "Stocks are falling rapidly and that is leading to tightness," said Robin Bhar, an analyst at Calyon. "It relates to the fact that there's a lot of material that's been cancelled and will leave the warehouses and be probably shipped to China."

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