MARKETS-METALS (UPDATE 5) * Global growth fears increase uncertain demand outlook * Summer slowdown in sight but stocks levels falling * Copper hits low at $6,580.50, down 15 percent in Q2 (Adds details, fresh quote) By Michael Taylor and Maytaal Angel LONDON, June 29 (Reuters) - Copper hit a one week low on Tuesday as weak U.S. economic data, worries over European bank financing and concerns over growth in China combined to dash hopes for a swift recovery. Benchmark copper for three-month delivery on the London Metal Exchange traded at $6,505 a tonne from $6,869 at the close on Monday and compared with a session low at $6,487.50, down more than 5 percent on the day. Tracking copper lower, zinc fell more than 6 percent to a one week low of $1,753, lead slipped nearly 7 percent to a more than one week low of $1,732, nickel fell over 6 percent to a session low of $19,361 and tin fell more than 4 percent to a one week low of $17,450. U.S. consumer confidence fell steeply in June after rising for three months, because of a recent slowdown in jobs growth, according to a private sector report released earlier. Also knocking metals, New York based research group the Conference Board earlier corrected its leading economic index for China to a 0.3 percent gain in April rather than the 1.7 percent rise the group earlier reported. "Revisions to Chinese growth estimates are very significant. Dollar strength added to the selling and we had really poor consumer confidence data, that is what has caused all the weakness," said Randy North, a trader at RBC Capital Markets. "If you look at physcial premiums, yes demand is still there but we are in the peak demand period, at the end of July things really begin to wind down. I would say prices go sideways to lower." U.S. stock markets, seen by some as a proxy for economic growth, dropped 2 percent after the weak consumer confidence data, while the dollar extended gains versus the euro following the data. A weak euro makes metals costly for European investors. "The metals markets are traditionally supposed to trade more with current fundamentals and be less forward looking but that hasn't been the case for the last 18 months," said Max Layton, associate director at Macquarie Bank. "The next couple of months we worry about the seasonal slowdown, together with a Chinese slowdown in construction activity." LIQUIDITY WORRY? Europe's financial crisis remained a concern for investors. Banks are due to repay nearly half a trillion euros to the European Central Bank on Thursday, leaving a potential liquidity shortfall of over 100 billion euros. Inventory levels also remained in focus for investors looking for signs of improving demand. Copper stocks fell 1,225 tonnes to 451,950 tonnes, having hit its highest level since October 2003 at 555,075 on Feb.17. "Base metals prices fall on market concerns and may fall further as lower equity price levels indicate lower economic growth," said investment bank Fairfax in a note. "The fear that demand in China is poised to fall significantly is further helping to subdue the (copper) price." Aluminium traded at $1,955 a tonne versus $2,029. LME stocks for the metal, used in transport and packaging, eased 7,075 tonnes to 4.43 million tonnes, down from record peaks at 4.64 million touched in late January. A large portion of those aluminum stocks are tied up in finance deals, to release cash for producers and to earn banks higher returns than they would get in money markets. Analysts added that investors may have already priced in the improving demand and fall in stock levels. Steel making ingredient nickel was at $19,475 from $20,605, while battery material lead was at $1,746 from $1,860, zinc was at $1,765 a tonne from $1,880, while tin was at $17,525 from $18,250. For the latest base metal analyses, click Metal Prices at 1509 GMT Metal Last Change Percent Move End 2009 Ytd Percent move COMEX Cu 293.35 -13.80 -4.49 334.65 -12.34 LME Alum 1946.00 -83.00 -4.09 2230.00 -12.74 LME Cu 6497.00 -372.00 -5.42 7375.00 -11.91 LME Lead 1738.00 -122.00 -6.56 2432.00 -28.54 LME Nickel 19450.00 -1155.00 -5.61 18525.00 4.99 LME Tin 17350.00 -900.00 -4.93 16950.00 2.36 LME Zinc 1761.00 -119.00 -6.33 2560.00 -31.21 SHFE Alu 14780.00 -135.00 -0.91 17160.00 -13.87 SHFE Cu* 52940.00 -1020.00 -1.89 59900.00 -11.62 SHFE Zin 14765.00 -600.00 -3.90 21195.00 -30.34 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Reporting by Michael Taylor; editing by Keiron Henderson)

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