By Michael Taylor and Pratima Desai LONDON, Feb 4 (Reuters) - Copper tumbled to three-month lows on Thursday as the dollar rose against the euro and the market fretted about the economic health of the United States, the world's largest economy. Benchmark copper MCU3 on the London Metal Exchange fell to $6,405 a tonne, the lowest since November 3. The metal used in power and construction was trading at $6,411 a tonne at 1514 GMT compared with $6,590 at the close on Wednesday. Triggers for the sell-off were news of an above consensus rise in weekly U.S. jobless claims and the dollar, which rose to its highest level since June last year. [USD/] [ID:nN04233513] "Latest development in the metals market is because of U.S. economic data," said Daniel Briesemann, analyst at Commerzbank. "Investors are worried about what is going on in euro zone countries, the euro is falling. A higher dollar of course weighs on metals and commodities." However, better than expected Dec. U.S. factory orders helped base metals recover a semblance of poise. [ID:nCAT005075] A rising U.S. currency makes commodities priced in dollars more expensive for holders of other currencies." The euro came under pressure after European Central Bank President Jean-Claude Trichet said many euro countries will have large, sharply rising fiscal imbalances. [ID:nN04235362] Copper has fallen more than 17 percent since hitting a 2010 peak of $7,796 a tonne on January 7. LME copper volumes spiked to 23,768 lots on Wednesday from 14,997 the previous day. Analysts said this highlighted the uncertainty in the market, as bears built up short positions. CHINA TIGHTENING However, Chinese demand for industrial metals helped copper rise 140 percent last year. [ID:nLDE6111OK] But over the last couple of weeks, it has come under pressure on nervousness about further policy tightening in China, the world's largest consumer of industrial metals. "The recent change in sentiment was probably triggered by concerns over monetary tightening in China," said Daniel Major, an analyst at RBS Global Banking & Markets. "They haven't actually done a great deal yet ... there is plenty of scope for surprises out of China in the next 12 months, as they try and drain the liquidity they've pumped in." Traders expect subdued activity until after the Chinese New Year holiday period. However Chinese copper product makers expect demand to rise after holidays, despite Beijing's moves to soak up liquidity. [ID:nTOE61208R] Supporting prices are LME copper stocks which have fallen in recent days, offering hope demand outside China may be improving. The latest data showed stocks fell 1,050 tonnes to total 539,425. Stocks of aluminium MAL3, used in transport and packaging, eased 6,050 tonnes but remain near record levels just below 4.6 million tonnes. Aluminium fell to $2,040 a tonne, the lowest since November 30. Aluminium was last at $2,043 a tonne from $2,083 at the close on Wednesday. Steel ingredient nickel MNI3 was at $18,300 from $18,195 and battery material lead MPB3 at $1,975 from $2,020 a tonne. Zinc MZN3, used to galvanise steel traded at $2,024 from $2,095 and tin MSN3 at $16,425 from $16,600 on Wednesday. Metal Prices at 1514 GMT Metal Last Change Pct Move End 2009 Ytd Pct move COMEX Cu 289.55 -7.80 -2.62 334.65 -13.48 LME Alum 2037.00 -46.00 -2.21 2230.00 -8.65 LME Cu 6400.00 -190.00 -2.88 7375.00 -13.22 LME Lead 1962.00 -58.00 -2.87 2432.00 -19.33 LME Nickel 18175.00 -125.00 -0.68 18525.00 -1.89 LME Tin 16325.00 -275.00 -1.66 16950.00 -3.69 LME Zinc 2018.00 -77.00 -3.68 2560.00 -21.17 SHFE Alu 16350.00 -210.00 -1.27 17160.00 -4.72 SHFE Cu* 54020.00 -1800.00 -3.22 59900.00 -9.82 SHFE Zin 17500.00 -485.00 -2.70 21195.00 -17.43 ** 1st contract month for COMEX copper * 3rd contract month for SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07 (Editing by James Jukwey)

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