The early close of the China stock market in Shanghai today will not go over well with investors. The Caixin Manufacturing PMI came in below expectations and it roiled Asian investors sending the CSI 300 Index 7% lower. The Honk Kong markets also went negative.

It is only the beginning of the year, but analysts who said that China’s worst days were behind it will not be standing on firm ground this morning. Europe will be opening in the next hour and has PMI data of its own to deal with. The U.S. markets will also likely be effected by the troubles in the China markets.

Look for FX markets to be volatile today, particularly since low volumes will plague global markets this week with many investors still on holiday for the New Year. Gold and Crude Oil will have to be watched, but bad news from China will do neither one of the commodities well long term. Stagnation remains a key element of the global economy.