Good afternoon everyone. After successfully re-inflating a popped bubble, the Chinese government announced that it is now set to take on its embattled trade sector, a timely move given that the nation’s preliminary PMI reading just came in at 48.2 – its lowest level in 15 months. Over in the markets, the SHCOMP fell almost 1.3% while Shenzhen slid 1.27%, ending their six-day rally though capping the week up 2.9% and 6% respectively. Hong Kong’s Hang Seng Index meanwhile fell 1.1% while Japan’s Nikkei Average slipped nearly 0.7%.
Here’s what else you need to know:
Gold gets bloodied to its 5 ½ year low. Support levels for the yellow metal continue to get obliterated as traders send the price of gold down almost 1% to $1,084 – its lowest in 5 ½ years. It is now on track for its worst weekly decline since October 2014. Reuters
Euro sinks after miserable German PMI reading. Germany’s robust manufacturing sector saw its PMI reading unexpectedly drop from 51.9 last month to 51.5 in July. Analysts had expected the reading to come in unchanged, prompting the Euro to fall nearly 0.4%. Financial Times (paywall)
Japan PMI blows away forecasts. While almost every country involved in today’s attack of the PMI’s had a pretty bad day, Japan saw its PMI reading soar to 51.4, its fastest pace in five months and way above analysts’ forecast of 50.5. Financial Times (paywall)
Photo credit: Ade Russell via Flickr