LONDON- Copper prices eased back on Monday from the highest levels in more than two years as COVID-19 cases surged, threatening to curb economic activity and metals demand.

Most industrial metals prices were weaker along with crude oil and European shares, which hit two-week lows as rising virus infection rates in Europe prompted renewed lockdown measures in some countries while a lack of U.S. stimulus also weighed on sentiment. 

"We're heading into the autumn/winter season and there's no sign of the coronavirus going away with the further spread in Europe and the U.S. That's going to hit the economic data in coming weeks and months," said Xiao Fu, head of commodity market strategy at Bank of China International in London.

“Also, as we head towards the U.S. election, we could see quite turbulent markets, and there are also geopolitical risk factors globally, so that could contribute to the risk-off sentiment as well.”

Three-month copper on the London Metal Exchange CMCU3 was down 0.3% to $6,800 a tonne by 1000 GMT, after earlier climbing to its highest since June 2018 at $6,877.50.

* The dollar index firmed, making metals priced in the U.S. currency more expensive for buyers using other currencies.

* Physical copper premiums in China continued to fall, losing $4.50 on Friday to $59 a tonne, data showed, extending a decline from highs of $100 six weeks ago. That is the lowest level since the start of April.

* Steel prices slipped on the Shanghai Futures Exchange, weighing on prices of zinc and nickel, used to produce galvanised steel and stainless steel respectively. 

* Global primary aluminium output fell to 5.485 million tonnes in August from a revised 5.489 million tonnes in July, data showed. 

* LME aluminium slipped 0.2% to $1,789 a tonne, zinc dropped 1.4% to $2,503, lead fell 0.8% to $1,897, nickel shed 1.4% to $14,695 and tin added 0.3% to $18,170.

(Reporting by Eric Onstad, editing by Ed Osmond) ((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO; Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))