LONDON: Copper prices sagged on Monday as a more infectious strain of the coronavirus threatened to wreak further damage on the global economy and investors ditched riskier assets.

Equities and oil prices fell and the dollar strengthened as countries including France, Germany, Italy, the Netherlands, Switzerland, Israel and Canada closed travel links with Britain, where infections have spiked.

Benchmark copper on the London Metal Exchange (LME) was down 1.4% at $7,871 a tonne 1153 GMT.

European stocks fell around 2.5% and oil around 5%, while the dollar's biggest gain since September made metals priced in the currency more expensive for buyers outside the United States.

"It's a classic risk off move triggered by this mutation of the virus," said Julius Baer analyst Carsten Menke.

Copper had rallied to $8,028 a tonne last week, its highest since 2013, as strong demand in China, government stimulus and the rollout of coronavirus vaccines encouraged speculators to pile into the market.

"The last leg of the rally was driven by the crazily bullish market move," said Menke. "Excessive speculation meant there was around 10% downside. What was needed was a trigger."

STIMULUS: US congressional leaders agreed on a $900 billion package to aid an economy and individuals battered by the surging coronavirus pandemic. Votes on the deal are likely on Monday.

POSITIONING: Copper prices could slip if speculative investors who have built their largest net long position on the Comex exchange since 2017 become less bullish and reduce their positions.

OTHER METALS: LME aluminium was down 1.9% at $2,017.50 a tonne, zinc lost 1.5% to $2,829, lead plunged 3.6% to $1,965.50 and tin was 1.1% lower at $19,830.

Nickel rose 0.2% to $17,525 a tonne.