SHANGHAI, May 29 (Reuters) - Copper slipped on Tuesday as Spain's debt risk premium hit a euro-era high, reviving fears that the euro zone's debt crisis may worsen and shear off the region's demand for metals.
Sentiment was also dampened by comments from a Chinese government economist that growth in the world's second largest economy is likely to dip below 8 percent in the second quarter.
The concerns offset easing worries on Monday over Greece's commitment towards bailout conditions.
Three-month copper on the London Metal Exchange edged down $10 to $7,679 a tonne by 0135 GMT, snapping a three-session winning streak during which it had risen 2 percent by Monday's close.
The most-active September copper contract on the Shanghai Futures Exchange ticked down 0.7 percent to 55,830 yuan ($8,800) a tonne, after rising 1.5 percent on Monday.
Spanish 10-year borrowing costs neared the 7 percent danger level and Bankia shares hit record lows on Monday after the government, struggling to sort out its finances, proposed putting sovereign debt into the struggling lender.
China's annual economic growth is likely to dip below 8 percent in the second quarter and weakness could persist, a government economist said on Monday, affirming rising expectations that the Chinese economy would only hit a bottom in June at the earliest.
Greece handed 18 billion euros ($22.6 billion) to its four biggest banks on Monday, the finance ministry said, allowing the stricken lenders to regain access to European Central Bank funding.
Newedge, a broker owned by French banks Credit Agricole and Societe Generale, has told clients it will do no new business in Greece, in the latest sign trading houses are preparing for the country leaving the euro zone.
Surveys on Saturday showed Greece's conservatives regaining an opinion poll lead that would allow the formation of a pro-bailout government. The news led to a small relief rally on Monday.
Asian shares and the euro eased on Tuesday, with a relief rally from last week's heavy selling faltering quickly as a surge in Spanish borrowing costs added to simmering worries about Europe's debt restructuring challenges.
The same concerns cause the euro to wobble near a two-year low against the dollar on Tuesday.
1230 U.S. Chicago Fed Midwest Manufacturing index April
1300 U.S. CaseShiller 20 mm nsa Mar
1400 U.S. Consumer confidence May
Base metals prices at 0135 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7679.00 -10.00 -0.13 1.04
SHFE CU FUT SEP2 55830 -380 -0.68 0.36
LME Alum 2022.75 0.75 +0.04 0.14
SHFE AL FUT SEP2 16020 -25 -0.16 1.14
HG COPPER JUL2 347.00 2.20 +0.64 0.99
LME Zinc 1908.00 -2.00 -0.10 3.41
SHFE ZN FUT SEP2 14955 -45 -0.30 1.08
LME Nickel 17000.00 0.00 +0.00 -9.14
LME Lead 1946.00 4.50 +0.23 -4.37
SHFE PB FUT 15275 -25 -0.16 -0.10
LME Tin 19800.00 5.00 +0.03 3.13
LME/Shanghai arb 968
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
($1 = 6.3450 Chinese yuan)