By Amrith Ramkumar

Copper prices fell Thursday, dropping from their highest levels since last summer, after release of data pointing to a continuing slowdown in eurozone economic activity.

Copper for May delivery, the most-active futures contract, fell 1.6% to $2.92 a pound on the Comex division of the New York Mercantile Exchange. Prices closed at their highest level in nine months Wednesday and are still up about 11% for the year, though they remain well below their June four-year highs.

Improving Chinese economic data and risk appetite have sparked this year's rebound because China is the world's largest consumer of industrial metals used heavily in construction and manufacturing. Some analysts expect Chinese stimulus efforts to spur growth in the world's second-largest economy, and data Wednesday showed Chinese growth topped expectations in the first quarter.

Still, some investors remain wary that setbacks in trade talks between the U.S. and China and a continuing slowdown in growth elsewhere could hurt industrial metals and other risk assets.

Figures Thursday showed the eurozone composite Purchasing Managers Index fell further in April to its lowest level in three months, another sign of a global manufacturing downturn.

Some analysts are fearful that weakness in Europe could spread elsewhere, hurting commodity demand as trade uncertainty lingers.

The dollar also rose after release of upbeat U.S. retail sales figures, a negative for metals because a stronger dollar makes them more expensive for overseas buyers. The WSJ Dollar Index, which tracks the U.S. currency against a basket of 16 others, climbed 0.3%.

Elsewhere in base metals Thursday, aluminum for delivery in three months inched up 0.1% to $1,852.50 a metric ton on the London Metal Exchange. Zinc fell 2.1% to $2,760, tin was down 0.3% to $20,350, nickel shed 1.7% to $12,675 and lead fell 0.5% to $1,936.

Among precious metals, most-active Comex gold futures fell 0.1% to $1,275.30 a troy ounce. Silver dropped 0.2% to $14.91, platinum inched up 0.4% to $894.60 and palladium fell 0.4% to $1,373.70.

Write to Amrith Ramkumar at amrith.ramkumar@wsj.com

(END) Dow Jones Newswires

April 18, 2019 09:43 ET (13:43 GMT)

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