Forexpros - Copper futures eased up from a five-month low during European morning trade on Thursday, but prices remained vulnerable to further losses amid sustained concerns over Spain’s high borrowing costs and fading hopes for a large-scale stimulus package from China. On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.397 a pound during European morning trade, easing up 0.2%. It earlier fell by as much as 0.7% to trade at USD3.354 a pound, the lowest since December 29, 2011. Copper prices plunged nearly 3% on Wednesday, as rising borrowing costs for Spain and Italy and indications that Greece's anti-austerity parties were gaining in opinion polls ahead of elections in June roiled market sentiment. Global equities and commodity markets have been rattled in recent weeks as fears over the possibility of a Greek exit from the euro zone and growing concerns Spain will be the next euro zone member to require a bailout dominated market sentiment. For the month, copper prices are down 11%, the biggest drop since December 2008. Prices are also more than 27% lower than last year's record high of USD4.648 a pound. Appetite for riskier assets came under pressure amid sustained concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout. The yield on Spanish 10-year bonds climbed to 6.7% on Wednesday, approaching the critical 7% threshold that preceded bailouts in Greece, Ireland and Portugal. Similar-maturity Italian yields increased to 5.98%. Elsewhere, concerns over the outcome of Greek elections mounted after an opinion poll showed anti-austerity party Syriza in the lead ahead of the June 17 vote, fuelling concerns that the country will reject the terms of its bailout agreement and be forced out of the euro area. Investors were also awaiting the outcome of an Irish referendum on the European Union’s fiscal treaty. Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months. Copper prices came under further pressure amid fading hopes for a large-scale stimulus package from China to boost slowing growth in the world’s second largest economy. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Fears over a slowdown in copper demand from the Asian nation have been weighing on prices lately. A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe. Meanwhile, copper traders were looking forward to the release of first quarter U.S. gross domestic product figures later in the day to gauge the strength of the U.S. economy. Attention is also shifting towards U.S. employment data due Friday. The non-farm payrolls report is expected to show the world's largest economy added 150,000 new jobs in May. Copper is sensitive to the global economic growth outlook because of its widespread uses across industries. Elsewhere on the Comex, gold for August delivery was up 0.2% to trade at USD1,568.85 a troy ounce, while silver for July delivery added 0.3% to trade at USD28.07 a troy ounce.

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