Copper hits eight month-low as eurozone fears mount

 Industrial metals sank on Monday, with copper hitting an eight month-low as investors sold off riskier assets on mounting fears over the euro zone economy's health, which knocked down its single currency. Concern that Hungary may be next casualty of the growing debt crisis in Europe and disappointing U.S. employment data  from Friday continued to unsettle financial markets, driving investors out of commodities and equities. Following a 3 percent fall in U.S. Dow Jones index on Friday, European shares fell sharply on Monday, following their peers in Asia. In metals, aluminium saw its lowest in eight months and zinc fell to an 11 month-low. Lead touched its lowest since May 2009, tin and nickel were at four-month lows.
Copper for three-months delivery on the London Metal Exchange fell to $6,074 a tonne, its lowest since October 13 and was at $6,148.75 a tonne by 0840 GMT, versus Friday's $6,280.
"The main driver is still the read through from weaker non-farm payrolls," said analyst Daniel Major at RBS. "The most recent focus is on Hungary," he said. Hungary will need to cut about 1.0-1.5 percent of GDP off spending to meet an IMF and EU budget target this year, seeking to draw a line under "exaggerated" talk of a possible debt crisis similar to Greece's that has unnerved global markets. "Whilst Hungary is not an enormous commodities consumer, it's the fears of contagion and general off-risk sentiment," Major said, adding that he expected industrial purchases to
reemerge as copper pulls back to $6,000 a tonne.
Investors are bracing for another volatile week in markets with more U.S. economic data on the way and a slew of Chinese indicators also due out including trade, industrial output and urban investment.