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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...

*CHINA MUST FACE `MORAL HAZARD' ISSUE, VICE MINISTER SAYS: CNBC

 

 

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Sun, 03/23/2014 - 22:05 | 4584042 playnstocks
playnstocks's picture

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

Sun, 03/23/2014 - 22:11 | 4584058 Millivanilli
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?

Sun, 03/23/2014 - 22:15 | 4584070 EatYourCornTake...
EatYourCornTakeyourPill's picture

Sum Ting Wong with Kvemlin procraimed reserve currency?

Sun, 03/23/2014 - 22:17 | 4584076 johngaltfla
johngaltfla's picture

Oh my God, the quarterback is TOAST!

Sun, 03/23/2014 - 22:23 | 4584098 knukles
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?
Nope.
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...

Sun, 03/23/2014 - 22:30 | 4584126 Millivanilli
Millivanilli's picture

Agreed on all points, except feet.   Try hooves

Sun, 03/23/2014 - 22:30 | 4584128 Uber Vandal
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?

 

 

Sun, 03/23/2014 - 22:49 | 4584160 TruthInSunshine
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.

Sun, 03/23/2014 - 22:47 | 4584182 NoDebt
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.

 

Sun, 03/23/2014 - 23:22 | 4584285 besnook
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.

Mon, 03/24/2014 - 01:27 | 4584532 Kirk2NCC1701
Kirk2NCC1701's picture

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

Mon, 03/24/2014 - 04:15 | 4584699 fijisailor
fijisailor's picture

Janet already threw in the towel

http://www.cnbc.com/id/101497635

Sun, 03/23/2014 - 23:12 | 4584268 Lewshine
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.

Sun, 03/23/2014 - 22:24 | 4584102 FieldingMellish
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).

Sun, 03/23/2014 - 23:05 | 4584245 pn17
pn17's picture

There is no reason EVER to not buy stawks!

Sun, 03/23/2014 - 22:06 | 4584047 Caviar Emptor
Caviar Emptor's picture

Let em eat dim sum

Sun, 03/23/2014 - 22:07 | 4584048 Dr. Engali
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.

Sun, 03/23/2014 - 22:51 | 4584205 NoDebt
NoDebt's picture

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

Sun, 03/23/2014 - 22:56 | 4584216 Dr. Engali
Dr. Engali's picture

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

Mon, 03/24/2014 - 07:36 | 4584816 Landrew
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.

Sun, 03/23/2014 - 22:09 | 4584050 new game
new game's picture

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

Sun, 03/23/2014 - 22:11 | 4584056 stormsailor
stormsailor's picture

so our mock starket is still green

Mon, 03/24/2014 - 02:51 | 4584591 TheRideNeverEnds
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.  

Sun, 03/23/2014 - 22:11 | 4584057 Iam Yue2
Iam Yue2's picture

"targeted spending on subways."

 

Ah yes, that old chesnut.

Sun, 03/23/2014 - 22:25 | 4584107 knukles
knukles's picture

Oh, I like the Air-Cleaning

Long Dyson and Hoover

Sun, 03/23/2014 - 23:16 | 4584202 TruthInSunshine
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.

Sun, 03/23/2014 - 22:12 | 4584063 Atomizer
Atomizer's picture

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

Yep!

Sun, 03/23/2014 - 22:14 | 4584068 holdbuysell
holdbuysell's picture

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

Sun, 03/23/2014 - 22:15 | 4584072 Father Lucifer
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."

Charge!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Sun, 03/23/2014 - 22:16 | 4584073 TruthInSunshine
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.

Sun, 03/23/2014 - 22:37 | 4584112 Dr. Engali
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.

Sun, 03/23/2014 - 23:12 | 4584267 Soul Glow
Soul Glow's picture

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

Sun, 03/23/2014 - 22:18 | 4584084 q99x2
q99x2's picture

Oh they lie about everything. BTFD.

Sun, 03/23/2014 - 22:23 | 4584100 Oldwood
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.

Sun, 03/23/2014 - 22:25 | 4584111 fijisailor
fijisailor's picture

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

Sun, 03/23/2014 - 22:27 | 4584113 Fred Hayek
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.

Sun, 03/23/2014 - 22:32 | 4584132 Hindenburg...Oh Man
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. 

Sun, 03/23/2014 - 22:40 | 4584155 The Shootist
The Shootist's picture

Hope, bitches.

Sun, 03/23/2014 - 22:47 | 4584184 Soul Glow
Soul Glow's picture

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

Sun, 03/23/2014 - 22:49 | 4584194 WMM II
WMM II's picture

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

 

 

 

:)

Sun, 03/23/2014 - 22:50 | 4584199 undertowed
undertowed's picture

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

Sun, 03/23/2014 - 22:54 | 4584211 mobydick
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.

Sun, 03/23/2014 - 23:20 | 4584293 besnook
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.

Sun, 03/23/2014 - 23:39 | 4584330 syntaxterror
syntaxterror's picture

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

Mon, 03/24/2014 - 00:33 | 4584451 seek
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.

Mon, 03/24/2014 - 01:47 | 4584550 mobydick
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

 

Mon, 03/24/2014 - 01:50 | 4584553 Rogue Economist
Mon, 03/24/2014 - 03:22 | 4584647 Philalethian
Mon, 03/24/2014 - 03:32 | 4584659 jubber
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...

Welcome to the Trueman Show

Mon, 03/24/2014 - 04:10 | 4584695 fijisailor
fijisailor's picture

Ha you globalist shits thought you could make the world into a universal kings and serfs empire and your plans are collapsing before your eyes and your answer is with paper lies.  You're pathetic really.

Mon, 03/24/2014 - 04:37 | 4584706 fijisailor
fijisailor's picture

My opinion on gold price suppression:

The FED started it trying to protect the beloved dollar

The Chinsese like the flavor of that treat and have found a way to buy up all the west's physical and suppress the price like the FED did

Now the West is in a panic and the Chinese have a firm grip on the gold market

The Chinese are in no hurry to collapse the West.  They will suck it dry first.

The West will continue to paper over every lie until that collapse.  The sheep will be totally unprepared for what is coming and that will be seen in the future as a major crime against humanity.

Mon, 03/24/2014 - 09:21 | 4585066 Carl Popper
Carl Popper's picture

Nash.  

 

China, speculators, and corporations  in general will be blamed.  

 

Our government and Fed and banker class will get away Scot free. 

 

"Hey look over there.  It is their fault"

Mon, 03/24/2014 - 06:40 | 4584768 AdvancingTime
AdvancingTime's picture

Every country has unofficial lenders, but in China individuals, companies and even local governments who can not get loans from state-controlled banks have been on a borrowing binge from these unofficial sources. China is awash in overcapacity and debt.

After several years of growing debt loads concern is rising the whole unstable pyramid is about to come crashing down bringing China and possibly the global economy with it. The economic efficiency of credit is beginning to collapse in China and the unwinding of China’s giant credit spree could be vary painful. More on China's credit trap below.

http://brucewilds.blogspot.com/2014/03/china-and-great-credit-trap.html

Mon, 03/24/2014 - 07:31 | 4584808 Quinvarius
Quinvarius's picture

Yuan is actually up huge.  Copper is up a little.

Mon, 03/24/2014 - 09:18 | 4585035 Youri Carma
Youri Carma's picture
So, what does Dr. Copper tell us? Copper Tumbles As China Performance of Manufacturing Index (PMI) Drops To Lowest In 8 Months :HSBC

So again, pay attention here, Elizabeth Campbell and Luzi Ann Javier from Bloomberg, copper proves again here to still be Doctor Copper.

Since these Muppets got the crazy idea that Dr. Copper isn’t Dr. Copper anymore because wur in such great, quote on quote, ‘recovery’ LOlz

Copper as Economy Sage Fails as Growth Defies Price Slump, 20 March 2014, by Elizabeth Campbell and Luzi Ann Javier (Bloomberg) http://www.bloomberg.com/news/print/2014-03-20/copper-as-economy-sage-fails-as-growth-defies-price-slump.html Bottoms Up Line: Dr. Copper still is the Doc. If you for example ask: "Huh, Whatzup Doc?", Dr. Copper will tell you. http://www.youtube.com/watch?v=X--Ly7pL8aw

Mon, 03/24/2014 - 09:17 | 4585055 Carl Popper
Carl Popper's picture

Fight club, bitchez. 

 

There are some fools who think if China collapses with a bunch of gold they will be OK.  

 

They will be selling that gold at 900.  

 

All part of the banker plan.  Be a buyer during the next deflationary maelstrom and take advantage. 

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