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China PMI Miss Slams JPY-Carry Trades

Tyler Durden's picture





 

Thanks to a drop into contractionary territory for both New Export Orders and Employment, HSBC's Flash China Manufacturing PMI missed expectations and dropped to its equal lowest 'expansionary' print in six months. Also struggling with pricing power, as the China industry minister notes the country is "clearly facing over-capacity problems," commodity currencies (and the Shanghai Composite) are getting monkey-hammered. As we noted earlier, China is somewhat hamstrung in its ability to save itself this time, and further to that, the China industry minister added, "companies have no strong desire to invest."

 

After some 'hope' it appears, just as with GDP, that China is reverting to its expansionary-contractionary self...

 

but this did not play well with JPY-based carry trades in the commodity currencies...

 

Shanghai Composite...

 

Charts: Bloomberg

 


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Mon, 04/22/2013 - 22:12 | Link to Comment Ness.
Ness.'s picture

Meow!

 

Naughty CATtiy.

Mon, 04/22/2013 - 22:16 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

The Chink is going down the drink, I think.

Mon, 04/22/2013 - 22:18 | Link to Comment Ness.
Ness.'s picture

I'll Chink to that!

Mon, 04/22/2013 - 22:24 | Link to Comment Dudeskis
Dudeskis's picture

Shame on the both of you.  So wrong....must resist the urge to raugh.

Tue, 04/23/2013 - 02:37 | Link to Comment Pareto
Pareto's picture

yeah but, just for responding to the post - you know- you're already going to hell. he he heeeee

Tue, 04/23/2013 - 06:22 | Link to Comment Go Tribe
Go Tribe's picture

And metals with it. The depression continues.

Tue, 04/23/2013 - 06:28 | Link to Comment smlbizman
smlbizman's picture

maybe those guys just get bored at 3a.m......what else is there to do other than mash silver at that time.....somebody needs to show them midget porn....

Mon, 04/22/2013 - 22:14 | Link to Comment FieldingMellish
FieldingMellish's picture

New Chinese proverb: Sell stawks, buy gold!

Mon, 04/22/2013 - 22:15 | Link to Comment thismarketisrigged
thismarketisrigged's picture

dont worry, when we all wake up tomorrow, benny boy will be printing the futures as green as possible.

 

he can overcome any challange, it does not matter how bad data is.

 

so, chinas last 2 major data releases, the gdp and now the pmi have been major misses, and factor that in with all the misses in the u.s data, including the housing which all the fools thought was actually recovering, and then all across europe the horrid data, and somehow these markets are not sinking.

 

dont worry, netflix will make sure the s&p does not fall tomorrow, with its bullshit earnings.

Tue, 04/23/2013 - 06:55 | Link to Comment Silverhog
Silverhog's picture

Come on Benny, your drug addicted economy is having delusions and convulsions. Where's the dope.

Mon, 04/22/2013 - 22:16 | Link to Comment Go Tribe
Go Tribe's picture

Nothing they can't fix with some intangibles.

Mon, 04/22/2013 - 22:20 | Link to Comment FieldingMellish
FieldingMellish's picture

Must be a hundred basis points of GDP in Bruce Lee movies alone!

Tue, 04/23/2013 - 06:23 | Link to Comment Go Tribe
Go Tribe's picture

Not to mention all the single Chinese chick ads on ZH. Glad Tylers are doing their most to prop up the Chinese economy.

Mon, 04/22/2013 - 22:23 | Link to Comment HD
HD's picture

3% GPD out of nowhere at the end of the week.

After the changes in July I assume we will be at 8% GPD just like our good friend China.

Mon, 04/22/2013 - 22:26 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Around and around the carry trade goes, where she stops everyone knows.

(The fiat abyss in case you missed the Fed memo.)

Mon, 04/22/2013 - 22:21 | Link to Comment thismarketisrigged
thismarketisrigged's picture

i am actually thinking to myself, why does this number matter?

 

the market does not trade on fundementals, it only trades on printing by the fed.

 

lastnight at this time, s&p futures were up 8 pts and dow was up about 60 on absolutley nothing whatsoever.

 

tonight with shit data, s&p futres are down a whopping 3 pts, go figure. if it was a beat, we would prob be up 20 s&p points.

 

 

Mon, 04/22/2013 - 22:27 | Link to Comment akak
akak's picture

Blobbing-down: the new mattering thing.

Mon, 04/22/2013 - 22:35 | Link to Comment crawl
crawl's picture

Don't fret...Kevin Henry and Co. will save us from those 0.0001% sell offs and shoot the ES higher and higher and higher.

In this new central planned investors market, bad news is good and good news is even better.

BTFD,

Mon, 04/22/2013 - 22:39 | Link to Comment Smuckers
Smuckers's picture

Next category will be "Tangibles Unrealized" - or the "iShit we should be buying but didn't".
Gotta be a few hundred billion in there too, once you classify food and gas as frivolous spending.

Mon, 04/22/2013 - 22:47 | Link to Comment rosiescenario
rosiescenario's picture

....and the next 'Virtual Intangibles'

Mon, 04/22/2013 - 23:02 | Link to Comment SheepDog-One
SheepDog-One's picture

Monkey-hammering.

Mon, 04/22/2013 - 23:08 | Link to Comment Bloody Chiclitz
Bloody Chiclitz's picture

It's like dark matter, it must be out there somewhere so lets count it and loan ourselves some zirp money on it.

Mon, 04/22/2013 - 23:11 | Link to Comment cdntrader
cdntrader's picture

YAMEAH !! (Yet, Another Miss, ES Another High !!)

Mon, 04/22/2013 - 23:20 | Link to Comment NoWayJose
NoWayJose's picture

Companies have no incentive to invest -- my favorite quote from this. Just cut costs and employees, borrow free money, and off shore to Thailand or Vietnam. US has been doing this for 25 years. Now China is no longer 'cheap' compared to other Asian countries (especially land), so Chinese companies do not want to open factories in China - especially with the Chinese government tightening some policies.

Mon, 04/22/2013 - 23:51 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Nah.  I do business in China and have done so for a decade.  These other countries are nowhere near taking China business away.  China is not only about cheap trinkets - they are moving quickly into high tech production.

Think iphones will move production to Bangladesh - not in my lifetime.

The reason China is tanking is because of course export markets are tanking.  The EU is China's biggest trading partner (or at least was)

The problem is very simple - people are simply BROKE.

Tue, 04/23/2013 - 06:25 | Link to Comment Go Tribe
Go Tribe's picture

Same reason every company is reporting softer revenues. People aren't buying - anywhere.

Tue, 04/23/2013 - 05:58 | Link to Comment KashNCarry
KashNCarry's picture

You're right, and you know what?  Those Chinese companies, and other Asian companies are slated to open new factories in Mexico and Latin America where operating costs are now the least expensive anywhere...

Mon, 04/22/2013 - 23:49 | Link to Comment reader2010
reader2010's picture

China has very extensive Labor Camp system which puts Gutlag to shame. Stay Bullish.

Mon, 04/22/2013 - 23:55 | Link to Comment Notarocketscientist
Notarocketscientist's picture

The solution is at hand.  Build more Ghost Towns.  More empty apartment buildings that will NEVER be rented because guess what - most people are still DIRT POOR

Some fucking ignoramus said to me recently 'but but but what about all those millions moving to the cities'

Yep that's happening but these people have no skills..... they make very little money ...... they do NOT have the means to rent an apartment that cost 250k.

Owners will leave them empty rather than accept 50 bucks a month in rent. 

THIS MARKET MAKES NO SENSE - CHANOS IS ABSOLUTELY RIGHT - CHINA IS JUST AS FUCKED AS JAPAN, AS THE EU, AS THE US, AS THE WORLD

The difference is people are still believing the BS out of here.

Tue, 04/23/2013 - 00:06 | Link to Comment buzzsaw99
buzzsaw99's picture

Bank of China must buy fraud cap stocks to support market.

Tue, 04/23/2013 - 04:14 | Link to Comment XRAYD
XRAYD's picture

So, Chinese quantitative Yuaneasing is just round the corner? 

Tue, 04/23/2013 - 06:23 | Link to Comment thismarketisrigged
thismarketisrigged's picture

''dont worry, when we all wake up tomorrow, benny boy will be printing the futures as green as possible.''

 

''he can overcome any challange, it does not matter how bad data is.''

 

 

 

 

and sure enough, it looks like this is exactly what is happening. bad china data? no problem

Tue, 04/23/2013 - 08:41 | Link to Comment css1971
css1971's picture

Green in half an hour....

Ok so everyone knows central bank printing is the only thing maintaining the status quo. The ceasing of printing will bankrupt very wealthy, powerful and amoral people with connections.

How do you get a central banker to do the right thing even if they want to, when their lives and the lives of their families are on the line.

Do NOT follow this link or you will be banned from the site!