(Updates prices) LONDON, Oct 17 (Reuters) - Copper slid to a one-week low on Friday, tracking a fall in global financial stocks as signs of credit stress at U.S. regional banks rattled markets. Benchmark three-month copper on the London Metal Exchange was down 0.5% at $10,597.50 per ton as of 1600 GMT. The metal widely used in power and construction had earlier fallen as much as 2% to $10,430, its lowest since October 10 and testing its 21-day moving average. Copper, considered a bellwether for the global economy, hit a 16-month high of $11,000 on October 9. "It's a generally risk-averse environment with the most risky assets under pressure," said Thu Lan Nguyen, head of foreign exchange and commodities research at Commerzbank. Sentiment on base metals turned negative as financial stocks tumbled on Friday following a rout in U.S. regional banking shares on worries about mounting risks and credit quality. "It's one additional concern, I would say, as regards the state of the U.S. economy," Nguyen said. Investors are also monitoring trade tensions between the United States and top copper consumer China, which on Thursday accused Washington of stoking panic over Beijing's rare earth export controls. U.S. President Donald Trump said on Friday his proposed 100% tariff on goods from China would not be sustainable, adding that he would meet with his Chinese counterpark, Xi Jinping, in two weeks. Recent fears of a shortage of available copper appear to have eased, for now. Copper stocks on the Shanghai Futures Exchange warehouses nudged up 550 tons to their highest since April, while on the LME, the discount of the cash copper contract over the three-month forward widened to $27 a ton, from $11.16 on Thursday, pointing to a less urgent need for the metal. Most of the LME complex was trading lower on Friday. Aluminium fell 0.6% to $2,772.50 a ton, zinc shed 1.3% to $2,934.50, nickel lost 1% to $15,120 and tin tumbled 2.1% to $34,970. Only lead managed to climb, adding 0.2% to $1,969.50. (Reporting by Tom Daly; additional reporting by Dylan Duan and Lewis Jackson; Editing by Tasim Zahid, Elaine Hardcastle and Shailesh Kuber) ((Tom.Daly@thomsonreuters.com)) Keywords: GLOBAL METALS/ (UPDATE 4)
