Risk aversion drives US copper to 3-1/2-mth lows

NEW YORK, Feb 5 (Reuters) - U.S. copper futures ended down
for the third straight day on Friday, hitting their lowest
levels since mid-October, as concerns over euro zone fiscal
problems drove further sales of assets perceived as risky.

For detailed report on global copper markets, click on
[MET/L]

* Benchmark copper for March delivery HGH0 slipped 2.15
cents to settle at $2.8575 per lb on the New York Mercantile
Exchange's COMEX division.

* Range extended down from $2.8905 to $2.8110, which marked
is lowest level since Oct. 15.

* March copper contract down nearly 7 percent on the week.

* COMEX estimated futures volume stood at 51,823 lots by 1
p.m. EST (1800 GMT). Final volume on Thursday hit 49,757 lots.

* Open interest dropped 2,155 lots to 130,015 contract open
as of Feb. 4.

* Copper weighed down by broader market risk aversion tied
to fiscal stability of euro zone - analysts.

* Copper likely to consolidate losses next week. Vulnerable
to further liquidation amid backdrop of stronger dollar and
weaker equities - Sterling Smith, an analyst for Country
Hedging Inc. in St. Paul, Minnesota.

* Euro fell to its lowest level against the dollar since
May on fears of euro zone member default and mixed U.S. jobs
data. [USD/]

* U.S. employers unexpectedly cut 20,000 in January, but
the unemployment rate surprisingly fell to a five-month low of
9.7 percent. [ID:nN05148583]

* Copper market sentiment weakened by fear Chinese efforts
to restrict bank lending and head off inflation could crimp
demand for industrial metals. [ID:nTOE61201R]

* London Metal Exchange copper warehouse stocks gained
1,725 tonnes to 541,150 tonnes on Friday. <0#LME-STOCKS>

* Deliverable copper inventories in warehouses monitored by
the Shanghai Futures Exchange up 13 percent at 114,302 tonnes
from 101,210 tonnes a week ago. [ID:nBJD003479]

* COMEX copper stocks gained 516 to 105,164 short tons as
of Thursday.

* LME benchmark copper for three-month delivery MCU3 shed
$125 to close at $6,265 a tonne.
(Reporting by Chris Kelly; Editing by David Gregorio)