SINGAPORE, July 25 (Reuters) - London copper fell to a one-month low on Wednesday before erasing losses to trade little changed as renewed worries over Greek and Spanish sovereign debt hit risk appetite and curbed expectations of metals demand.
Three-month copper on the London Metal Exchange traded at $7,416 by 0148 GMT, down $1 from the previous session when it logged small gains. Prices earlier fell to $7,355 a tonne, the lowest since June 28 and have shed more than two percent for the year.
The most-traded November copper contract on the Shanghai Futures Exchange fell 0.14 percent to 54,420 yuan ($8,500) yuan a tonne.
Spain paid the second highest yield on short-term debt since the birth of the euro at an auction on Tuesday, and EU officials said Greece had little hope of meeting the terms of its bailout, casting fresh doubt on its future in the euro zone.
Moody's Investors Service has changed the outlook on the provisional (P)Aaa long-term rating of the European Financial Stability Facility (EFSF) to negative from stable, a blow to a fund that was supposed to backstop struggling EU members.
Japan's exports fell in June from a year earlier, the first decline in four months, as a slowdown in Europe, China and other emerging markets weighed on demand for Japanese goods.
London Metal Exchange (LME) shareholders decide on Wednesday whether to accept a $2.2 billion offer by the Hong Kong stock exchange for the 135-year-old institution, the world's largest marketplace for materials such as copper, aluminium and zinc.
Investors continued to give the euro and risk currencies a wide berth on Wednesday following a selloff in global stocks as worries about the euro zone debt crisis festered.
Asian shares fell and the euro was stuck near multi-year lows against major currencies on Wednesday as soaring borrowing costs deepened worries Spain might need a bailout, while Greece's finances appeared to fall short of terms conditional to its aid.
Oil edged up on Tuesday in choppy trading as signs that China's manufacturing sector was improving lent support while weak euro-zone data and the region's spreading debt crisis limited gains.
* 0800 GMT - Germany Ifo Business Climate for July Forecast
* 1330 GMT - Treasury Secretary Timothy Geithner testifies in Washington
* 1400 GMT U.S. New Home Sales for June
Base metals prices at 0148 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7416.00 -1.00 -0.01 -2.42
SHFE CU FUT NOV2 54420 -80 -0.15 -1.70
HG COPPER SEP2 336.35 1.05 +0.31 -2.11
LME Alum 1866.50 -2.50 -0.13 -7.60
SHFE AL FUT NOV2 15220 -155 -1.01 -3.94
LME Zinc 1809.00 12.00 +0.67 -1.95
SHFE ZN FUT NOV2 14465 -95 -0.65 -2.23
LME Nickel 15600.00 -150.00 -0.95 -16.62
LME Lead 1845.00 -15.00 -0.81 -9.34
SHFE PB FUT 14765.00 -115.00 -0.77 -3.40
LME Tin 17375.00 -150.00 -0.86 -9.51
LME/Shanghai arb^ 934
Shanghai and COMEX contracts show most active months
^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
($1 = 6.3858 Chinese yuan)