Commodities and mining shares are expected to come under pressure, after China attempted to curb inflation by raising interest rates over the Christmas weekend.

Chinese Premier Wen Jiabao said on Sunday he had “confidence” that the measures will dampen the economy, which has seen inflation jump to the highest level in two years.

The People’s Bank of China increased interest rates by 25 basis points to 5.81pc on Christmas day, spurred by fears of social unrest over high food prices.

“I believe we can keep prices at a reasonable level through our efforts. I have the responsibility and I have the confidence, too,” Mr Wen told Chinese media.

“When there is inflation, we must establish confidence, know our vantage points and take forceful and decisive measures in a timely manner to curb price rises.”

The move to slow China’s rampant economy is likely to affect the prices of agricultural commodities, base metals and other mined raw materials used in heavy industry.