It is a rough day in markets worldwide after troubling manufacturing news from China:
- A low reading of manufacturing sentiment in China. PMI was 47.1, the lowest in six years, and a level consistent with a contraction in manufacturing activity.
- Safety hazards are being found everywhere, including two thirds of industrial facilities in Beijing that handle volatile chemicals. Meanwhile, fires continue in Tianjin and dangerous levels of sodium cyanide are confirmed in the area.
As markets react, the yuan is choppy, gold is up, oil is down, and stocks are down everywhere. China stocks fell 4 percent, making this one of the worst weeks ever in the Chinese stock market, down 12 percent from last Friday.
Update, 4 pm ET: The selloff reached the U.S. stock market, with stocks down 3 percent today and 6 percent in the last three days. The Dow Jones Industrial Average closed down more than 500 points, a psychologically significant level.