U.S. copper falls as dollar firms, equities slide

NEW YORK, Dec 1 (Reuters) - U.S. copper futures traded in a narrow and lower band on Monday, hit by a stronger dollar and tumbling U.S. stock markets, but traders said early losses kept prices in check following declines in U.S. construction spending and factory activity reports.

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

* Copper for March delivery HGH9 slipped 1.24 percent, or 2.05 cents, to $1.6290 a lb on the New York Mercantile Exchange's COMEX division.

* Range spanned $1.6225 to $1.6750 a lb.

* COMEX estimated 9 a.m. volume at 2,938 lots.

* Copper was hit early by dollar advances, but pulled up from lows when the U.S. currency gave up ground after a sharp decline in U.S. factory activity - traders. [USD/]

* Copper fell in early morning business and was trying to shrug off the gloomy news that affected U.S. equity markets, but remains susceptible to selling - traders.

* "We're suffering from the strength of the dollar and the weakness of the stock market. We're being sold down with other assets," said Frank McGhee, head precious metals trader at Integrated Brokerage Services LLC in Chicago.

* Institute for Supply Management's index of national factory activity fell to 36.2 in November, below forecasts and its lowest level since 1982; new orders index lowest since 1980. [nWEN1140]

* U.S. stocks extended losses after a report showed further contraction in U.S. manufacturing activity, adding to worries about economic slowing. [.N]

* U.S. construction spending fell a steeper-then-expected 1.2 percent in October. [nN01504069]

* Surprisingly steep declines in construction and manufacturing sector readings kept pressure on copper, despite the dollar's retracement.

* In London, a 450-tonne drop in copper inventories at London Metal Exchange warehouses to 291,200 tonnes offered mild support. Stocks remain up nearly 50 percent since September at their highest level since January 2004.

* Benchmark LME copper for three-month delivery MCU3 was lower at $3,596 per tonne, down from $3,620 a tonne, where it ended the kerb on Friday. (Reporting by Carole Vaporean; Editing by Walter Bagley)