Copper fell from the highest price in two weeks on concern that government stress tests will show some of the largest U.S. banks will need more capital and financial losses will continue to curb growth. The tests may show that about 10 banks need additional capital to weather a deeper recession, people familiar with the matter said. The Federal Reserve is expected to deliver the results of the tests to executives today. Copper had surged 12 percent in the previous four sessions on speculation that the global contraction may be bottoming. “We’ve had some optimism that the worst may be over, but we’re not at the other end of the tunnel just yet,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. “People are going to be skittish this week ahead of the bank stress tests.” Copper futures for July delivery dropped 3.05 cents, or 1.4 percent, to $2.1135 a pound at 9:07 a.m. on the Comex division of the New York Mercantile Exchange. Earlier, the most- active futures touched $2.177, the highest since April 20. Executives from many of the 19 U.S. lenders under review, as well as government officials, are set to discuss the test results publicly after the markets close May 7, the people said. Bank losses coupled with slumps in manufacturing and rising unemployment spurred the worst U.S. recession in five decades. On the London Metal Exchange, copper for delivery in three months rose $20, or 0.4 percent, to $4,620 a metric ton ($2.09 a pound). The move higher reflected some of the gains on the Comex yesterday when the London market was closed for a holiday. The price reached a record $8,940 on July 2.

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