Markets in Asia suffered from negative data out of China. The PMI index showed contraction in the manufacturing sector (49.8) for the second month in a row, alongside with the 15th month of shrinking factory employment. Consequently the Yuan has weakened to the edge of its trading band against the US Dollar. The current situation is raising concerns on what will be the next moves by PBOC and government as investors foresee further easing in the upcoming months.
Traders in the US will also focus on manufacturing PMI data as slowing global demand is becoming more of an issue for American businesses as highlighted by recent earnings announcements.