Copper fell more than 4 percent on Tuesday, haunted by demand concerns as ongoing turmoil in the financial sector hit equities, and data showed a large surplus in the world copper market in January. Copper for three-months delivery MCU3 on the London Stock Exchange was last bid at $4,181 a tonne in rings from $4,350 on Monday when markets balked on fears a deadly swine flu outbreak could reach pandemic proportions. The metal used in power and construction hit a day's low of $4,163, its lowest since early April. Among other industrial metals tin MSN3 was last bid at $11,895 a tonne from $12,400, having dropped nearly 6 percent to a day's low of $11,700 a tonne. Fears over the economic impact of the flu continued to knock equities, but analysts said the initial knee-jerk reaction had been overblown due to general jumpiness in an economic downturn. "The swine flu triggered a sell-off... (but) the initial reaction should calm down," said Andrey Kryuchenkov, an analyst at VTB Capital. "Full-scale risk aversion is not likely." The new virus has killed up to 149 people in Mexico and world health experts moved closer on Monday to declaring it the first flu pandemic in 40 years as more people were infected in the United States and Europe. [ID:nN27484099] (For more stories on the flu outbreak, click on [nFLU]) Concerns for the financial sector clouded the demand outlook as the Wall Street Journal said U.S. regulators have told Citigroup Inc (C.N) and Bank of America Corp (BAC.N) they need to raise more capital following the results of recently concluded 'stress tests'. [ID:nBNG118035] "The market was starting to correct itself before we even heard of swine flu," said one LME trader. "It's also starting to hit a few technicel areas where people sell more."

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