SHANGHAI, June 12 (Reuters) - London copper slipped 0.9 percent on Tuesday, giving up almost half its gains in the previous session, as relief over EU's bailout of Spain's banks turned into worries about how the funds will affect its borrowing costs.
Uncertainty over Greek elections on Sunday is also keeping investors cautious as European officials discuss contingency plans should Greece exit the euro zone.
Three-month copper on the London Metal Exchange fell 0.9 percent to $7,352 a tonne by 0111 GMT after rising 1.7 percent on Monday, although it remains on track to post a 0.8 percent gain this week.
The most-active September copper contract on the Shanghai Futures Exchange fell 1.2 percent to 53,700 yuan ($8,400) a tonne, after rising 2.5 percent the previous session.
The euphoria over an EU bailout for Spain's troubled banks has faded as investors sounded the alarm over its impact on public debt and worried whether Greek elections will deepen the euro zone crisis.
European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro.
There are signs that the economies of two of the world's leading emerging powerhouses, India and China, are starting to falter, while Europe continues to be handicapped by its debt woes, the latest report from the OECD showed on Monday.
Two U.S. Federal Reserve policymakers amplified their concerns over Europe's crisis on Monday, offering praise for the weekend deal to bail out Spanish banks but warning that much is yet to be done to avoid global spillovers.
Asian markets reversed the previous day's hefty gains as a European bailout for Spain's debt-stricken banks failed to convince investors that the spread of the debt crisis in Europe will be halted.
The euro was on the defensive on Tuesday as worries over Spain's hurried bank bailout were compounded by jitters about upcoming elections that may determine Greece's future in the euro.
1145 U.S. ICSC chain stores Weekly
1230 U.S. Import prices mm May
1255 U.S. Redbook retail sales Weekly
1800 U.S. Federal budget May
:: OPEC 159th Ordinary Meeting
Base metals prices at 0111 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7352.00 -68.00 -0.92 -3.26
SHFE CU FUT SEP2 53700 -650 -1.20 -3.47
LME Alum 1971.50 -1.00 -0.05 -2.40
SHFE AL FUT SEP2 15850 -75 -0.47 0.06
HG COPPER JUL2 331.35 -2.95 -0.88 -3.57
LME Zinc 1879.25 -10.75 -0.57 1.86
SHFE ZN FUT SEP2 14745 -140 -0.94 -0.34
LME Nickel 17033.00 -292.00 -1.69 -8.96
LME Lead 1894.00 -20.00 -1.04 -6.93
SHFE PB FUT 15015 -75 -0.50 -1.80
LME Tin 19520.00 20.00 +0.10 1.67
LME/Shanghai arb 814
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
($1 = 6.3694 Chinese yuan)