Reuters reported that London copper fell for a third straight session on Wednesday as investors scrambled into safer dollar holdings, fearing credit downgrades in Europe as the United States warned of risks to its economy from the euro zone debt crisis.

At its final policy meeting of the year, the US Federal Reserve gave no hints of new stimulus measures to offset the effects of the worsening European debt crisis but did leave the door open to further easing next year.

Mr Thomas Lam Singapore based economist at OSK DMG, a JV between Malaysian securities firm OSK Holdings Bhd and Germany's Deutsche Bank AG said that "In the whole scheme of things, the topsy turvy situation in Europe is putting a negative blanket over the whole world. The lack of any hint of any major policy move out of the FOMC meeting last night probably weighed on sentiments."

Three month copper on the London Metal Exchange declined 0.95% to USD 7,528 per tonne by 0730 GMT. Prices fell as low as USD 7,492.50, the weakest since November 30th 2011. London copper has tumbled about 22% so far this year after gaining for the last 2 years. The most traded February copper contract on the Shanghai Futures Exchange dropped 0.73% to CNY 55,710 per tonne.

(Sourced from Reuters)