Good morning. Here's what you need to know.
- Asian markets were down in overnight trading with the Nikkei plunging a massive 3.7%. The Nikkei had been rallying on the back of 'Abenomics' but is now 17% off its recent high. Europe is mostly lower with London's FTSE off 1.5% and U.S. futures are higher.
- Official China PMI climbed to 50.8 in May, beating expectations for a decline to 50. Meanwhile, HSBC China PMI which focuses on smaller companies fell to 49.2 in May, from 50.4 in April. This is lower than the Flash PMI reading of 49.6. Look at the state of global manufacturing >
- South Korean exports unexpectedly increased 3.2% year-over-year in May. This beat expectations for a 0.9% decline.
- European manufacturing contracted less than expected in May. German manufacturing PMI hit a three-month high of 49.4, up from 48.1. A reading below 50 however shows that manufacturing is still at contractionary levels. Italian PMI climbed to 47.3 in May, from 45.8. French PMI hit a 13-month high of 46.4, and Spanish PMI hit a two-year high of 48.1.
- The Markit PMI manufacturing report for May is out at 8:58 a.m. ET, followed by the ISM manufacturing index at 10. Consensus is for PMI to hold steady at 52.1, and for the ISM manufacturing index to rise to 51. Follow the release at Business Insider >
- Anti-government protests continued in Turkey. 500 were reported to be injured and about 2,000 detained by the end of the weekend, according to the WSJ. Stocks fell over 6% in Istanbul.
- At least 112 people were killed by a fire at a poultry plant in Dehui, China. 300 workers were at the plant when the fire broke out. Now take a look inside China's massive pork industry >
- Capital spending by Japanese companies fell 5.2% year-over-year in Q1. Investment was down 0.9% from the previous quarter. Prime Minister Shinzo Abe had previously promised to raise private investment to pre-2008 crisis levels.
- Court proceedings over Bank of America's $8.5 billion settlement with investors in the mortgage crisis are set to begin today. Justice Barbara Kapnick of New York State Supreme Court will preside over the case, according to Reuters. The 12 smartest people on Wall Street >
- Construction spending for April is out at 10 a.m. ET. Consensus is for construction spending to rise 1% month-over-month. Follow the release at Business Insider >
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