“The Chinese economy, which for several years was the flag bearer for economic growth, is also showing concerning signs of slowing down. The Chinese manufacturing PMI dropped to 50.4 in May from 53.3 in April, just above the all important 50 level, which indicates whether the sector is expanding or contracting. The HSBC manufacturing PMI index, a second published manufacturing activity index, has been in contraction since November of last year. Thus, the growth prospects for Europe and China are affecting the performance of the rest of the world, as commoditydependent emerging markets have watched commodity prices drop over the past month. This translates into growth in emerging markets, but fundamentally the growth of those dependent on commodities, coming in lower than analysts expected during the first quarter of this year. One of the few regions that has, so far, dodged the bullet, is Asia ex-China. Growth in this region continues, but we expect growth to slow down as its major consumer markets adjust to lower economic growth”. Economy Group Team at Wells Fargo.