Copper settled -0.66% down at 442.50 as appetite for growth linked assets weakened amid mounting concerns over global growth prospects, while uncertainty over whether Spain will request a full scale sovereign bailout also weighed. Sentiment also remained vulnerable amid uncertainty over whether Spain will request a full scale sovereign bailout. Investors remained cautious as Madrid is to present its draft budget for next year and announce structural reforms, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody's is expected to complete a ratings review on Spain later this week. Greece also added to concerns, after German magazine Der Spiegel reported over the weekend that the country faces a EUR20 billion budget shortfall, almost twice as much as previously thought. The risk-off trade environment prompted investors to pile in to the relative safety of the US dollar, with the euro dropping to a seven-day low against the greenback. Uncertainty over the CCP leadership transition, expected to take place in October, and ongoing fears over a deeper than expected slowdown in Chinese economic growth are also both weighing on metal. For today's session market is looking to take support at 440.5, a break below could see a test of 438.6 and where as resistance is now likely to be seen at 444.7, a move above could see prices testing 447.

Trading Ideas:

Copper trading range for the day is 438.6-447.

Copper ended lower as a rally driven by infrastructure plans in China and policy easing by ECB and US Fed ran out of steam

The global refined copper market was nevertheless facing a deepening production deficit this year.

ICSG said the market stood in a 473,000-tonne deficit in the first half of this year.