| Waning strength in the Chinese economy could weigh on both commodities and the metals sector over the next few quarters. China's manufacturing sector contracted for a fourth consecutive month in April, according to the most recent HSBC/Markit purchasing managers' index. The final reading of the PMI for April came in lower than forecast at 48.1 -- a reading below 50 indicates contraction.
Both output and new orders contracted in April, and new export orders also fell back into contraction after a gain the previous month. "[The numbers] indicate that the manufacturing sector, and the broader economy as a whole, continues to lose momentum," said Qu Hongbin, chief economist for China at HSBC............................................Full Article: Source
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