Welcome to today’s Morning Coffee Break – U.S. futures are under pressure today as traders become fearful once again of global growth outlook after China reported its 11th consecutive disappointing Purchasing Managers Survey (PMI) of 46.3 for the month of August.Traders are now squarely focused on the Philadelphia Federal Reserve’s report due out today at 10 a.m. ET and tomorrow’s U.S. weekly jobs claims reports scheduled for 10:30 a.m. ET.

U.S. futures are indicating a negative open today with the Dow Jones fair value of -34.96, S&P 500 fair value of -5.10 and the NASDAQ’s fair value currently at -10.58.

U.S. exchanges are coming off its second day of being basically flat but yet the Dow Jones is on track for its best monthly gain since October 2011

Morning Coffee Break Global Markets Watch

European Markets

European markets reacted as well to the disappoint Chinese PMI data and disappointing PMI data release from France. With China’s  11th consecutive contracting PMI result the hardest hit industry hit in the euro zone this morning are Resources firms as crude oil prices dropped to levels not seen since the beginning of August.  Look for pressure on BP (BP, quote) as they continue to sell assets to pay for the Gulf of Mexico disaster.

Emerging Markets

China’s equities fall to the worst level since February 2009 bringing the entire region lower as China’s Purchasing Managers Survey disappointed once again for nearly a full year. The data clearly indicated deterioration in China’s manufacturing output.  Pretty much any resource company came under pressure on the news.  The news of course lead to crude oil continues to fall in the overnight session which effected Chinese energy names.

Companies To Watch

Bed Bath & Beyond (BBBY, quote) earned $0.98 per share for its fiscal second quarter.

Starbucks (SBUX, quote ) will begin selling its new single-serve, Verismo , brewing machine online this week for $199, sales start next month.

Futures and Commodities Corner

Crude Oil

WTI crude oil fell for the 4^th day in a row as the euro zone session came online Thursday after China and France PMI results sent fear once again into the markets concerning global growth. Crude oil is reacting to global slowdown as it discounts the effect of QE3.

As if that was not enough pressure on the crude oil it now seems that oil exporter Saudi Arabia pumped more crude oil than originally was thought to be as the Saudi Arabia’s output approached the highest production level in nearly 3 decades.

Equity only readers can gain exposure to WTI Crude Oil through the United States Oil Fund (USO, quote) ETF that seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The USO will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil.

Gold

Gold prices pulled back for the second day in a row as traders seek safety in the U.S. dollar after China and France reported disappointing PMI results indicating economic growth.

Equity only readers gain exposure to the gold through the SPDR Gold Shares Trust (GLD, quote) ETF that seeks to replicate the performance, net of expenses, of the price of gold bullion. The GLD trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets.

The Morning Coffee Break Bottom Line

Look for lower open as traders’ sentiment moves towards risk off and defensive positions. Any growth related commodity such as crude oil and copper should be lower on the day. Watch out for economic headlines as they will mostly likely drive market direction today.