What the Diverging PMIs Tell Us

This morning Markit Economics and HSBC reported their monthly flash Purchasing Managers Indices for China, the eurozone and the U.S. It would be nice if all three of these geographies saw their economies moving in the same direction, but that's not what's happening, or at least that's not what the flash reports are saying. Let's take a look.

China pops ... HSBC's preliminary purchasing managers' index for June says China's factory activity expanded to a reading of 50.8 in the month, reversing a contraction a month earlier, when it showed a reading of 49.4 a month earlier. Some longer perspective puts the flash figure at a seven-month high, with output, orders, backlogs and stock purchases all moving up. Shares of iShares FTSE/Xinhua China 25 Index (FXI) as well as SPDR S&P China (GXC) are two ways to invest in the rebound....546 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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