China Could Jolt Markets on Aug. 1 With PMI Below 50, Westpac, SocGen Say @ Forex Factory

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China Could Jolt Markets on Aug. 1 With PMI Below 50, Westpac, SocGen Say

Chinese manufacturing data due in four days could jolt global markets by showing the first contraction in 17 months, according to analysts at Societe Generale SA and Westpac Banking Corp. Seasonal factors mean there is a “tangible risk” the government-backed Purchasing Managers’ Index for July will slip below 50 for the first time since February 2009, said Glenn Maguire, chief Asia economist for Societe Generale in Hong Kong. A PMI released by HSBC Holdings Plc could also show a contraction, he said. “In a world where financial markets are increasingly sensitive to Chinese data flow, if realized, this could elicit a significant market reaction,” Maguire said in a note today. The... Full Story

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