Reuters reported that copper prices fell on as weak retail sales data from the United States stirred worries over slowing growth in the world's largest economy.

Investors are also cautious ahead of an Italian debt auction later in the session and a Greek election on the weekend. Negative outcomes to either event would compound market concerns over Spain's finances and the euro zone's debt problems possibly driving a stampede out of riskier assets.

Fundamentals:
1. Three month copper on the London Metal Exchange fell 0.2% to USD 7,375 per tonne by 0113 GMT. That put it on track to post three consecutive sessions of losses after Monday's 1.7% jump on a short lived rally after a bailout package for Spain's banks was announced.

2. The most active September copper contract on the Shanghai Futures Exchange lost 0.5% to CNY 53,810 per tonne catching up with London's previous losses after rising 0.6% on Wednesday.

3. US retail sales fell for a second straight month in May and wholesale prices dropped by the most in 3 years adding to a raft of other recent signals including reports on employment and manufacturing, that have pointed to a slowdown in economic recovery.

4. The sluggishness of the US economy was also highlighted by a Reuters poll of economists which showed the world's largest economy growing more slowly and creating fewer jobs than thought only a month ago.

5. In the euro zone, credit ratings agency Moody's Investors Service cut its rating on Spanish government debt on Wednesday by three notches to Baa3 from A3, saying the newly approved euro zone plan to help Spain's banks would increase the country's debt burden.

6. Adding to worries over Spain, more economists polled by Reuters recently said they thought Spain would seek an international sovereign bailout as compared to an earlier survey in April

7. The poll results, which showed a slim majority of economists believing this, came just days after Madrid sought up to 100 billion euros to rescue its banks.

8. Technocrat Prime Minister Mario Monti appealed to Italy's politicians on Wednesday to back his tough economic medicine to avoid Rome becoming the next victim of the euro debt crisis. Italy will hold a debt sale of up to EUR 4.5 billion later in the session.