SHANGHAI, June 8 (Reuters) - Copper fell on Friday after the U.S. Federal Reserve's chairman gave no hint that further monetary easing was imminent, disappointing those hoping that more stimulus by the world's largest economy would help boost global commodity prices.
Investors also began to worry that a decision on Thursday to cut rates in China, the world's top metals consumer, signaled grim economic data is on the cards.
Three-month copper on the London Metal Exchange dipped 1.6 percent to $7,376 a tonne by 0105 GMT, after rising 1.1 percent in the prior session. It remains on track to gain 0.2 percent on the week.
The most-active September copper contract on the Shanghai Futures Exchange fell 0.5 percent to 53,400 yuan($8,400) a tonne, after dropping 0.3 percent the session before. It looks set to end the week 2 percent lower.
Fed Chairman Ben Bernanke said on Thursday the U.S. central bank was ready to shield the economy if financial troubles mount but offered few hints that further monetary stimulus was imminent.
China delivered twin surprises on interest rates on Thursday, cutting borrowing costs to combat faltering growth while giving banks additional flexibility to set competitive lending and deposit rates in a step along the path of liberalisation.
But the central bank's cut, the first since the global financial crisis in late 2008, has also raised concerns about a deluge of May Chinese data due this weekend, with Asian shares losing ground on Friday.
Fitch Ratings cut its rating on Spain's government debt by three notches to 'BBB' on Thursday and signalled it could lower it further by putting the country on negative outlook.
Chancellor Angela Merkel said Europe was ready to act to ensure stability in the euro zone, however.
Asian shares edged lower on Friday, while the euro and commodity currencies nursed modest losses.
0600 Germany Trade data Apr
0800 Italy Industrial output yy Apr
1230 U.S. International trade Apr
1400 U.S. Wholesale inventories Apr
1930 U.S. CFTC commitment of traders data
Base metals prices at 0105 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 7376.00 -119.00 -1.59 -2.95
SHFE CU FUT SEP2 53400 -240 -0.45 -4.01
LME Alum 1982.25 -9.75 -0.49 -1.87
SHFE AL FUT SEP2 15875 -15 -0.09 0.22
HG COPPER JUL2 333.15 -3.90 -1.16 -3.04
LME Zinc 1884.25 -24.75 -1.30 2.13
SHFE ZN FUT SEP2 14740 20 +0.14 -0.37
LME Nickel 16360.00 -235.00 -1.42 -12.56
LME Lead 1914.00 -3.00 -0.16 -5.95
SHFE PB FUT 0 -15050 -100.00 -100.00
LME Tin 19950.00 0.00 +0.00 3.91
LME/Shanghai arb 1226
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
($1 = 6.3635 Chinese yuan)