Over the weekend, China industrial profits for June YoY showed a decline of -3.1% vs 1.1% in May. The fall in profits is indicative of headwinds faced as a result of the ongoing trade war with the US and global growth slowing.

It may also be indicative of the China companies eating the costs of the tariffs imposed on China exports to the US in order to keep market share.

The Manufacturing and Non-manufacturing PMI data for July will be released on Wednesday night (Thursday in China) with Manufacturing PMI expected to rise modestly to 49.6 from 49.4. A reading below the 50 level is a sign of manufacturing contraction. The Non-manufacturing PMI index is expected to dip to 54.0 from 54.2 in June.

The Caixin PMI manufacturing dates will be released on Thursday (Friday in China) with the expectations for a reading of 49.6 vs 49.4 last month.