China PMI Shows Growth

China’s manufacturing sector continued to expand in June for a fourth consecutive month. In a story by Xinhua News Agency, the China Federation of Logistics and Purchasing said its purchasing managers index (PMI) rose 0.1 from May to 53.2 in June.

The survey was conducted by the National Bureau of Statistics and covered purchasing and supply managers at over 700 companies around China. The PMI numbers suggest that the Chinese economy continues to improve as a reading above 50 indicates expansion.

From the Bull Pen: The emerging market bubble burst in 2008 and skeptics were quick to ridicule the decoupling theory. But emerging market stocks may be different this time around should stocks correct. The Morgan Stanley A Shares Fund (CAF) is an opportunity into its 200 DMA (27.70). If and when.

From the Bear Cave: Here in US, bears can keep an eye on Allegiant Travel Company (ALGT). Leisure activity likely won’t be at the top of the list for the consumer into the back half of 2009. In the short term, one can consider downside entry near $42 with a tight buy stop above that level.

Quick Check Around the World

Asian trading closed with the Hang Seng 0.81%, India 1.05%, Shanghai 1.65%, Nikkei -0.19%, and Taiwan 2.28%.

Glancing towards Europe, we see the FTSE 1.47%, CAC 1.65%, DAX 1.50%

As of 8:15 AM EST, S&P Futures are trading +6.60 to 922.00 and Nasdaq futures are +9 to 1485.75.

A Look at Commodities

Over in commodities, crude oil is trading +1.05 to 70.94 while gold is +2.80 at 930.20 this morning. Silver is +0.560 to 13.63 and copper +3.35 to 229.15.

The dollar index is -0.2150 to 80.2100.

On the Radar

Economics

08:15 ADP Employment Change -363k
10:00 Construction Spending -0.5%
10:00 ISM Index 44
10:00 Pending Home Sales 1.1%
10:30 Crude Inventories
02:00 Auto Sales
02:00 Truck Sales

Click here for the full list.

Good luck today!