China's outlook concerns rattle global markets

Concerns about the outlook for China have dominated markets in the past week and are likely to remain front of mind in the coming week. The depreciation of recent days may reflect an attempt to open up the financial sector to market forces rather than an attempt by the authorities to use a weaker currency to kick start growth. 

However, coming at a time of mounting concern about Chinese economic growth, the yuan's depreciation has led to further selloffs in emerging markets equities, currencies and in commodity prices.

With no further Chinese economic data until Friday's Caixin 'flash' manufacturing PMI for August, market attention will be primarily on whether the yuan continues to fall and if the PBoC attempts to counter any further depreciation.