Copper & Yuan Tumble As China Manufacturing PMI Drops To Lowest In 8 Months, Output Plunges

Tyler Durden's picture

HSBC's Flash China Manufacturing PMI printed at 48.1 (against a hope-strewn 48.7 bounce expectation). This is the lowest in 8 months and among the lowest prints since Lehman. Even the usually silver-lining-seeing HSBC Chief economist had little positive to add, "weakness is broad-based with domestic demand softening further." Early strength in CNY, stocks, and copper is eroding fast.



Across the board ugly...

And in chart format:

From Markit/HSBC: “The HSBC Flash China Manufacturing PMI reading for March suggests that China’s growth momentum continued to slow down. Weakness is broadly-based  with domestic demand softening further. We expect Beijing to launch a series of policy measures to stabilize growth. Likely options include lowering entry barriers for private investment, targeted spending on subways, aircleaning and public housing, and guiding lending rates lower.”

Too bad Beijing overnight made it quite clear not to expect any big stimulus this year...

Copper was holding in early but is fading fast now...


The Yuan rallied out of the gate on a modestly higher fixing but is fading back fast post PMI...


And for everyone hoping that bad news is good news and stimulus is coming...



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playnstocks's picture

Thats bad enough news to push US futures in the green.. for now!

Millivanilli's picture

Looks like the crooks in China, like foxcon, are going to need a new enemy for the people to hate, lest they become the focus of the  restless natives.


Will the next World War be on Tee Vee?

EatYourCornTakeyourPill's picture

Sum Ting Wong with Kvemlin procraimed reserve currency?

johngaltfla's picture

Oh my God, the quarterback is TOAST!

knukles's picture

Well, all's going according to plan/forecast.
China weak, Europe never anything but weak, Oz weakening along with China, and the poor USofA whaddya mean we got a nascent green shoots self-perpetuating recovery?
Even Janet's gonna have to throw in the towel.
After she takes all four her feet out of her mouth.

What we got here is a failure to communicate.
We're in a Liquidity Trap, which is a Monetary Phenomenon brought about by Non-Monetary Factors.

Go figure.
Another speech from the Golf Throne Ought a take care of that, now, shouldn't it?
Plus, psychology is so damned good.

Cynical fuck

P/E's expanding with no hope for increased E
Grab your income while you can...

Millivanilli's picture

Agreed on all points, except feet.   Try hooves

Uber Vandal's picture

OT, but did anyone notice that Israel indefinitely closed all of their embassies today, worldwide, first time in their history, due to a diplomatic strike, which has been on going since March 5?

Or, is this in preparation for a different sort of strike?



TruthInSunshine's picture

I don't buy that it's due to "low pay."

That's almost too ridiculous an excuse to be used as cover for blowback against Israel for something it is planning to do in the near future in terms of a military operation.

NoDebt's picture

My guess is different sort of strike.  Against Iran, maybe.  Haven't heard much about that with Ukraine and that damned jet going missing, but Israel is up to something.  They know what everyone else knows- the playing field is wide open now.


besnook's picture

nutandyahoo has trapped all the israelis in country so he can start a war with iran and still have some people left to buy falafel. most of the country keeps their other "passport" handy.

Kirk2NCC1701's picture

So.. back to Russia when the petro-dollar dies as the GRC (Global Reserve Currency) and the freebies end?

Lewshine's picture

Each day that passes exposes this country for the farce it has become. A banana republic with a bunch of lying crooks at the helm, with a printing machine, and a complicit media - AND nothing more. Putin knows it. He will own us in any event we choose to become involved.

FieldingMellish's picture

and PMs down. All we need is another war or an economic collapse and the S&P will bang it over 2000 and gold will collapse sub $900. Down is up. Black is white. War is peace (and good for stawks).

pn17's picture

There is no reason EVER to not buy stawks!

Dr. Engali's picture

Moral hazard ? Wtf is this free market talk? Somehow I suspect that moral hazard only applies to those furthest away from the central planners.

NoDebt's picture

Not much for original thinking, but they can copy somebody else's playbook like nobody's business, can't they?

Dr. Engali's picture

China is well known for their reverse engineering. Original ideas in the modern world is another story.

Landrew's picture

Been out of touch? That was SO last decade thinking. Just as Japan can only copy ideas in the 70's. Where do you think most of our grad students in engineering and physics come from? At our lab, it's Chinese or Spanish being spoken by students.

new game's picture

the writings are om the wall for all to see...

stormsailor's picture

so our mock starket is still green

TheRideNeverEnds's picture

Hey now, they were down a solid couple ticks for a few minutes, you had your chance to buy the dip for this week; now back to all time highs.  

Iam Yue2's picture

"targeted spending on subways."


Ah yes, that old chesnut.

knukles's picture

Oh, I like the Air-Cleaning

Long Dyson and Hoover

TruthInSunshine's picture

A billion Chinese, paid to stand atop roofs, waving swiffer sweepers in the air.

A plan that will give Krugman the biggest erection of his life.

Atomizer's picture

More carry trading until the cops show up to arrest the inside HFT traders serving alcohol and prostituting child porn activities.


holdbuysell's picture

Aaaand Virtu cowers in 3...2...1...

Father Lucifer's picture

But Bloomberg says;


"A Chinese manufacturing index (SHCOMP) unexpectedly fell, underscoring the risk that leaders will need to add stimulus to meet this year’s economic-growth goal."


TruthInSunshine's picture

If China holds strong on no bailouts for "risk taking" bankers, bond holders & shareholders, they will clear the deck of their septic debt, giving rise to real prospects for real, growth again in the future, and will prove that they're 350x more of a "free market" economy than the laughing stock mockery of capitalism than the Bernank or Draghi made of the U.S. or EU economies.

Dr. Engali's picture

I suspect that they will let the 'right entities' fail while they pick the winners and losers, just like the U.S did with Bear & Lehman. There is no doubt in my mind that China will protect the politically connected 'too big to fails', and I'm sure they have their own version of the Squid and Morgue.

Soul Glow's picture

Soros and Rogers have been investing in China for decades.  There's a few billion for you.

q99x2's picture

Oh they lie about everything. BTFD.

Oldwood's picture

Moral hazard?! Really, at this late date there is concern of moral hazard? One foot already in hell is well past moral hazard. Power concentrated in realtively few hands has allowed them to inflict terminal harm to the world for the sake of their own survival.

fijisailor's picture

And gold taking a plunge right now too.  Will it stay low until the LCS opens tomorrow?

Fred Hayek's picture

As Turd Ferguson has pointed out, the drop in copper prices probably also has something to do with the fact that as of a few days ago there had been zero deliveries on copper contracts at the Comex. When they don't have the product to deliver they go for the try to scare buyers away from taking delivery gambit by attacking the price.

Hindenburg...Oh Man's picture

Gold is sucking ass, even with BI's headline about Russia preparing to invade Ukraine. I guess Chinese economic collapse and geopolitical turmoil is good for some NASDAQ and S/P futures overnight ramp with a suppression of Gold. 

Soul Glow's picture

Yuan's taking a page out of the Bernanke playbook and depreciating to help "increase exports".

WMM II's picture

simply put it is the rate of diminishing returns upon billionaires.





undertowed's picture

Nothing but a buy signal. Dow 20,000 or bust!

mobydick's picture

This should be great for Australian property prices. All those rich Chinks getting their billions out before it all turns to shit.

besnook's picture

so everything is bad in china but still good in the usa? i get it.  with the world markets tanking the only road to atke is back to the dollar. your choice is debt, equity or cash. gold and silver is the under the table option.

syntaxterror's picture

This news should help produce another record breaking day on the Street. Queue your buy orders! BTFATH!

seek's picture

Shortened delivery times is a negative, even though they don't show it as such -- generally it means increased availability, which can be due to higher production, or decreased demand. In this case, decreased demand is the obvious reason.

mobydick's picture

Fortescue’s cost cutting gives it edge over rivals: analysts

Analysts are tipping a modest rise in the iron ore price after last week’s flash crash, providing an opportunity for bargain hunters, with Fortescue well placed to profit from a price rise.

Above is from Aust Fin Review:

So no probs here in Oz. In fact, we're forecasting iron ore prices going up.

All I can say is things must be really serious if we paper over every bit of bad news that comes along


jubber's picture

Yet another magical middle of the night rampfest and stop run...Chinese Banks rallying like crazy!...and of course Gold and Silver smahed to pieces just as the Golden cross dared to show it self...just so blatant its ridiculous...

I guess Europe will rally of the huge weekend Spanish riots, the National Front wins in France and the vote by Veneto to leave Italy...would make sense...

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