China’s weak PMI means good news for commodities, for now

News Snapshot:

Bad news for China’s economy appears to spell good news for commodities, with prices of copper and iron ore gaining on hopes for new stimulus measures after yet another weak indicator. China’s manufacturing activity dropped for a fourth consecutive month in July, with the official Purchasing Managers’ Index (PMI) coming in at 49.3, below the 50 level that separates expansion from contraction. The PMI was slightly higher from 49.0 in June, but has now been below 50 for the past three months in a worrying sign that negative sentiment is becoming entrenched in the world’s second-biggest economy. More worrying for...