The flash Caixin manufacturing PMI dropped for a third straight month, to 47.1 in August, its lowest reading since Q2 2009. New orders, output, employment and inventories all deteriorated over August. Also, export orders fell fur ther, suggesting that external demand did not improve as expected.
"Given the broad-based weakness in the Caixin PMI report, the official manufacturing PMI to decrease again in August, to 49.8 from 50 in July. Any further sign of deterioration in manufacturing exports will be bad news for China's growth in Q3, says Societe Generale in a research note.


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