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METALS-London copper sinks to 7-week low on tapering anxiety

SYDNEY, Jan 27 (Reuters) - London copper sagged to its lowest in seven weeks on Monday as concerns over imminent cuts to the Federal Reserves's bond buying program and turmoil in emerging economies spilled across into commodities.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange edged down by 0.23 percent to $7,163.75 a tonne by 0114 GMT from the previous session. It earlier traded at $7,160 which was its lowest since Dec. 11.

* The most-traded April copper contract on the Shanghai Futures Exchange slipped by 0.74 percent to 50,900 yuan ($8,400)a tonne.

* Top emerging market policymakers moved to allay concerns about their economies on Friday after investors sold off their currencies, raising fears of a broad market rout.

* Chinese steelmakers and power plants are being forced to shop around for higher-quality raw materials to meet tougher air pollution standards, a move that will be a boon for global mining giants that produce premium-grade iron ore and coal.

* Hedge funds and money managers raised their net long positions in copper futures and options for the first time in two weeks, as expectations of a better global economic outlook boosted demand for industrial metals, data from the Commodity Futures Trading Commission showed on Friday.

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MARKETS NEWS

* Asian shares tumbled and the yen rocketed to a seven-week high against the dollar on Monday, driven by fears of a continued flight from emerging markets as tighter credit conditions in China threatened to put the brakes on the world's second-biggest economy.

DATA (GMT)

0900 Germany Ifo business climate index

1358 U.S. Flash Markit services PMI

1500 U.S. New home sales

1530 U.S. Dallas Fed manufacturing index

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Three month LME tin ($1 = 6.0488 Chinese yuan)

(Reporting by Melanie Burton; Editing by Ed Davies)