--Comex March copper down 2.05 cents, or 0.6%, at $3.3105 a pound
--Stronger dollar damps demand for dollar-denominated metals like copper
--Worries about Europe escalate after Fitch cut France credit outlook Friday
By Tatyana Shumsky
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Copper prices edged lower Monday, amid pressure from a stronger dollar and continued worries about European sovereign-debt problems.
The most actively traded contract, for March delivery, was recently 2.05 cents, or 0.6%, lower at $3.3105 a pound on the Comex division of the New York Mercantile Exchange.
Thinly traded December-delivery copper was down 0.55 cent, or 0.2%, at $3.3185 a pound.
Copper prices were weighed down by a stronger dollar, which advanced against the euro. Copper futures are denominated in dollars and seem more expensive to buyers who use other currencies when the greenback rallies.
Market participants are watching for downbeat news from Europe after credit ratings company Fitch lowered France's ratings outlook on Friday. Fitch's decision indicates a 50% chance that Europe's second largest economy could lose its coveted triple-A rating over the next two years.
Europe as a region is second behind China in global copper consumption. The red metal is widely used in manufacturing and construction, and prices tend to wane when economic activity slows.
However, copper prices are likely to remain volatile heading into the year-end as falling trading volumes pave the landscape for sharp sudden moves in either direction. Individual trades tend to have an outsized impact on price discovery when trading volume is low, and with Christmas and New Year holidays on the horizon some market participants have already moved to the sidelines.
Copper prices may garner support from China, the world's top consumer of the metal, over the coming months, said analysts at Commerzbank. A forecast electricity shortfall will reduce domestic production of refined copper and force Chinese copper users to rely more on imports, especially in the March to May period.
