US copper sinks below $1.50/lb on economic worries

NEW YORK, Jan 8 (Reuters) - U.S. copper futures fell back below the $1.50 a lb level early Thursday, as surging inventory levels and fears of a deepening global recession grounded an early-2009 rally linked to index fund rebalancing.

For detailed report on global copper markets, click on [MET/L]

* Copper for March delivery HGH9 was trading down 4.35 cents, or 2.88 percent, at $1.4680 a lb by 10:40 a.m. EST (1540 GMT) on the New York Mercantile Exchange's COMEX division.

* The morning range from $1.45 to $1.5225.

* COMEX estimated volume at 7,141 lots by 10 a.m.

* Buying ahead of reweighting of the Dow Jones AIG Index .DJAIG and S&P GSCI .SPGSCI earlier this week [ID:nL566176] boosted COMEX copper prices to a five-week high at $1.6225.

* The bullish momentum was cut short after weak U.S. economic data reinforced fears of a prolonged recession - analysts.

* Edward Meir, metals analyst with MF Global, said the statistic that did the most damage on the macro side Wednesday was the bearish ADP jobs report.

* U.S. private employers shed 693,000 jobs in December, up sharply from the revised 476,000 jobs lost in November and far more than economists estimated. [ID:nWEN2275]