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More Bad News for Emerging Markets: Overnight, the Chinese Markit/HSBC Purchasing Managers' Index (PM) report was released, and the news isn't good. As domestic and export demand has weakened in China, the Index slumped to 49.6 in January from December's final reading of 50.5. Continued investor flight to safe-haven bonds this morning has dragged global stocks down to a two-and-a-half-month low.
Many emerging markets, which rely heavily on trade in goods and commodities with China, declined this morning.
India fell 1.25%, Japan shed 2.45%, and Thailand dropped 0.7%. The weak PMI data also lead to declines in gold prices, silver prices, and copper prices.
[EXTRA: Our Chief Investment Strategist Keith Fitz-Gerald tells investors how to play the plunging global markets today.]