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METALS-London copper falls to more than 2-wk low on demand worries

SYDNEY, Feb 24 (Reuters) - London copper fell sharply on Monday to its lowest in more than two weeks as worries about tightening monetary policy in the United States and fragile growth in China hurt the demand outlook for metals.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange had dropped 1.11 percent to $7,075.50 a tonne by 0108 GMT, from the previous session when it finished the day and week little changed.

* LME copper earlier hit $7,060 a tonne which was its lowest since Feb. 6.

* The most-traded April copper contract on the Shanghai Futures Exchange slid 1.33 percent to 49,870 yuan ($8,200) a tonne.

* Severe cold weather and a shortage of houses on the market pushed U.S. home resales to an 18-month low in January, the latest indication economic activity has hit a soft patch.

* Sweeping reforms are urgently needed to boost productivity and lower barriers to trade if the world is to avoid a new era of slow growth and stubbornly high unemployment, the OECD warned on Friday.

* Indonesian policies to force miners to process raw materials at home are misfiring, as disputes over the new rules disrupt plans to invest nearly $4 billion in copper smelters to cater for miners such as Freeport-McMoRan Copper & Gold n

* Hedge funds and money managers raised their net long position in gold and silver futures and options, and reduced their net shorts in copper markets in the week to Feb. 18, according to data from the Commodity Futures Trading Commission on Friday.

* For the top stories in metals and other news, click , or

MARKETS NEWS

* Asian stocks wobbled and the dollar firmed in early trade on Monday, as investors appeared to give no more than a passing nod to the Group of 20's latest commitment to spur faster global growth.

DATA (GMT)

0130 China House prices

0900 Germany Ifo business climate

1330 U.S. National activity index

1358 U.S. Markit Flash Services PMI

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 = 6.0914 Chinese yuan)

(Reporting by Melanie Burton; Editing by Joseph Radford)