July 14 (Reuters) - Prices of copper, often termed as the bellwether of the global economy, fell on Wednesday after inflationary pressures in the United States sparked worries that the world’s biggest economy will tighten its monetary policy sooner than planned.
Three-month copper on the London Metal Exchange was down 0.3% at $9,385 a tonne, as of 0315 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange declined 0.6% to 68,690 yuan ($10,609.64) a tonne.
The U.S. dollar touched a three-month high versus the euro and a one-week high versus the yen, after U.S. consumer prices last month increased by the most in 13 years, spurring bets of faster monetary policy tightening than the Federal Reserve officials have so far signalled.
A firm dollar makes greenback-priced metals more expensive and less appealing to holders of other currencies.
FUNDAMENTALS
* China, the world’s biggest metals consumer, will take “comprehensive measures” to ease rising commodity prices, Premier Li Keqiang said.
* LME aluminium decreased 0.4% to $2,525.50 a tonne, nickel dropped 1.3% to $18,535 a tonne, and zinc was down 0.5% to $2,919 a tonne.
* ShFE aluminium rose 0.4% to 19,260 yuan a tonne, nickel declined 1% to 138,510 yuan a tonne, zinc shed 1.1% to 21,865 yuan a tonne, and lead was down 1.1% to 15,570 yuan a tonne.
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MARKETS NEWS
* Asian shares fell after data showing the biggest jump in U.S. inflation in 13 years fuelled some market expectations that the Federal Reserve could exit pandemic-era stimulus earlier than previously thought.
DATA/EVENTS (GMT)
0600 UK CPIT YY June
0630 India WPI Inflation YY June
1600 US Federal Reserve Chairman Jerome Powell
testifies on the Semiannual Monetary Policy
Report to the Congress before a virtual House
Financial Services Committee hearing
1800 US Federal Reserve issues the Beige Book of
economic condition
$1 = 6.4743 yuan
Reporting by Mai Nguyen in Hanoi, Editing by Sherry Jacob-Phillips
Source: Reuters