Manufacturing shrinks in China but euro area and US report stronger economic data

China's manufacturing sector contracted in July, an HSBC survey showed on Wednesday. Its preliminary reading of the manufacturing PMI for China fell to 47.7 this month, an 11-month low, from 48.2 in June.

In contrast, the eurozone manufacturing sector returned to expansion in July, according to a Markit report on Wednesday. Its preliminary reading of the eurozone manufacturing PMI rose to 50.1 this month from 48.8 in June.

The eurozone services PMI rose to 49.6 in July from 48.3 in June, helping to push the composite index up to 50.4, an 18-month high.

Markit's preliminary US manufacturing PMI also rose in July to 53.2 from 51.9 in June.

In more good news for the US economy, new home sales rose 8.3 percent in June to the highest pace since May 2008.