MARKETS-METALS (UPDATE 3) * Global equities decline, risk aversion rises * China PMI falls to 52.1 in June from 53.9 in May * Coming up: Weekly U.S. jobless claims, due at 1230 GMT (Adds fresh comment/details, changes dateline from SHANGHAI) By Maytaal Angel LONDON, July 1 (Reuters) - Copper tumbled on Thursday as risk aversion rose after weak manufacturing data from top consumer China added to fears the pace of global economic recovery could be slowing, knocking equities worldwide. Benchmark copper for three-months delivery on the London Metal Exchange traded at $6,390 a tonne at 0835 GMT from a close of $6,510 on Wednesday. Prices of the metal used in power and construction hit a day's low of $6,360. Global stocks, seen by some as a proxy for economic growth, fell in Asia and Europe after manufacturing data showed China's rapid economic growth was slowing, increasing fears of a double dip recession. "China is an easy catch all term but generally economic data throughout the world has been slightly disappointing. Our house view is not for a double dip but clearly the fears are there," said Stephen Briggs, analyst at BNP Paribas. China's official purchasing managers' index (PMI) fell to 52.1 in June from 53.9 in May, knocked by government measures to cool the property market and restrain bank lending. According to the National Bureau of Statistics, the drop in the official PMI also reflected the "grim" outlook for exports, given debt woes rattling the euro zone and China's recent abolition of some export tax rebates. Denting sentiment further, Moody's Investors Service said it might lower Spain's ratings just as fears eased about how banks would cope with repaying massive loans to the European Central Bank on Thursday. Meanwhile, euro zone manufacturing slowed in June to its weakest growth rate in four months. "There are worries about double dip and rightly so. We are going into a period of slower growth. The enormity of problems in Europe, possible slowdown in China and the U.S. is enough to tip it," said BaseMetlas.com analyst William Adams. FACTORED IN Copper closed the second quarter of 2010 with a loss of more than 17 percent on Wednesday, snapping a string of five consecutive quarterly gains and suffering its biggest three-month decline since the late-2008 financial crisis. Although most London Metal Exchange stocks fell strongly in the second quarter, analysts say this indicator of possible demand strength is seasonal and has long been factored into prices. In addition, Briggs pointed out: "The decline in stocks is not in all cases reflecting metal going to consumers, it's possible we're seeing stocks shifting location. In aluminium, everybody believes more is being produced than consumed and yet LME stocks are declining." Aluminium was at $1,951 a tonne from $1,977.50, with latest data showing LME stocks continued to fall away from record levels, dropping 6,050 tonnes to total 4.42 million tonnes.. Galvanising metal zinc was at $1,764.50 from $1,790, battery material lead was at $1,726 from $1,735, tin was at $17,350 from $17,450, and stainless steel ingredient nickel was at $19,330 from $19,745. Metal Prices at 0838 GMT Metal Last Change Percent Move End 2009 Ytd Percent move COMEX Cu 286.80 -6.80 -2.32 334.65 -14.30 LME Alum 1950.00 -27.50 -1.39 2230.00 -12.56 LME Cu 6390.00 -120.00 -1.84 7375.00 -13.36 LME Lead 1720.00 -15.00 -0.86 2432.00 -29.28 LME Nickel 19225.00 -520.00 -2.63 18525.00 3.78 LME Tin 17300.00 -150.00 -0.86 16950.00 2.06 LME Zinc 1765.00 -25.00 -1.40 2560.00 -31.05 SHFE Alu 14605.00 -85.00 -0.58 17160.00 -14.89 SHFE Cu* 51340.00 -730.00 -1.40 59900.00 -14.29 SHFE Zin 14460.00 -115.00 -0.79 21195.00 -31.78 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Editing by James Jukwey)

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