The Chinese Manufacturing PMI missed its target with a result of 49.6 this morning, the HSBC estimate was 50.6. Upon the disappointing result the JPY has gotten slightly stronger. The Nikkei in Japan and the Chinese bourses have traded lower with the news also.  The negative result in China this morning points towards contraction.

Chinese data has been in question by Digital Markets Advisor and other analysts for over a year now. Skeptics question the desire of the Chinese government and their motives regarding economic reports. Today’s result via the HSBC Manufacturing PMI highlights that not all is well for the Asian juggernaut and certainly will increase doubts. Outcomes like this will not make the commodities markets any easier and bears waking up to this news will feel comfortable when considering the implications for lackluster demand.

In a couple of hours from Europe Flash Manufacturing and Services PMI reports will come from Germany and France. Investors have been proving a cautious bunch the past week and stock markets including Wall Street in the States have been rather lackluster. A rather poor Manufacturing PMI number is expected in France today with an estimate of 47.6. The German expectation is a figure of 54.1. While many analysts believe France is still being challenged by a recession like atmosphere it is the German report today which now must be watched carefully.