* Shanghai copper posts biggest pct fall in over 7 months * Copper drops to 3-week lows on LME, ShFE * LME nickel dips to lowest in over 3 years * Tuesday's China, Europe manufacturing data eyed * Coming up: Euro zone consumer confidence for July; 1400 GMT (Updates prices; adds quotes, details) By Carrie Ho SHANGHAI, July 23 (Reuters) - Copper prices tumbled to three-week lows on Monday as the rising risk that Spain will become the fourth euro zone country to seek a bailout dented the outlook for the global economy and for metals demand. London copper had fallen 2.1 percent to $7,389.75 a tonne by 0908 GMT, while Shanghai copper futures closed down 2.8 percent at 54,370 yuan a tonne, after both hit their lowest in three weeks. "News on Spain possibly seeking a full sovereign bailout has escalated market worries into panic today," said Great Wall Futures analyst Li Rong. "It has been a game of dominoes with each market taking turns to drag down others." A Shanghai-based trader added that investors in China have been increasingly sensitive to bad news recently as the country's economic growth slows. LME nickel dipped as far as $15,450 a tonne, its lowest since July 2009, dragged down by the euro zone worries as well as weak global demand for its most important downstream product, stainless steel. Investors grew jittery about Spain's finances as media reported half a dozen local governments would follow in the footsteps of Valencia, which has already requested help from the central government to stay afloat. Traders are awaiting manufacturing data from China and Europe on Tuesday for further clues on the global economy. "We are looking out for news of fresh stimulus measures in China and the United States, and concrete measures to deal with Spain's problems," said an analyst with an international trading firm, though she added that China was unlikely to act in July as it would be too soon after a recent rate cut. The grim economic backdrop offset an International Copper Study Group report on Friday that said the global refined copper market was in a 384,000-tonne deficit from January to April 2012, up sharply from a 26,000-tonne deficit during the same period in 2011. Base metals prices at 0908 GMT Metal Last Change Pct Move YTD pct chg LME Cu 7389.75 -155.25 -2.06 -2.77 SHFE CU FUT NOV2 54370 -1540 -2.75 -2.26 LME Alum 1872.00 -20.00 -1.06 -7.33 SHFE AL FUT OCT2 15355 -235 -1.51 -3.06 HG COPPER SEP2 335.45 -9.35 -2.71 -2.37 LME Zinc 1812.75 -26.75 -1.45 -1.75 SHFE ZN FUT NOV2 14465 -250 -1.70 -2.23 LME Nickel 15610.00 -340.00 -2.13 -16.57 LME Lead 1860.00 -41.00 -2.16 -8.60 SHFE PB FUT 14805 -190 -1.27 -3.17 LME Tin 18400.00 -530.00 -2.80 -4.17 LME/Shanghai arb 841 Shanghai and COMEX contracts show most active months ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month (Reporting by Carrie Ho; Editing by Joseph Radford and Chris Lewis)

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