This page has been archived and commenting is disabled.
US Equity Futures Nosedive After China PMI Plunge
It appears bad news in China is "bad news" for everyone. With Chinese authorities already in full liquidity spigot-mode, the fact that China PMI for August collapsed to its lowest since March 2009 strongly suggests that - unlike every talking-head's proclamation - a crashing stock market does (whether reflexively or not) impact the real economy. US equity futures legged significantly lower on the news - S&P 500 to 7-month lows, eyeing the stunning 2,000 level; and Japanese stocks also legged lower.
Weakest China Manufacturing PMI since March 2009...
and the breakdown is ugly..
The 'confidence-inspiring' Caixin/Markit economists proclaim...
The Caixin Flash China General Manufacturing PMI for August has fallen further from July’s two-year low, indicating that the economy is still in the process of bottoming out. But overall, the likelihood of a systemic risk remains under control and the structure of the economy is still improving. There is still pressure on the front of maintaining growth rates, and to realize the goal set for this year the government needs to fine tune fiscal and monetary policies to ensure macroeconomic stability and speed up the structural reform. This will lead the market to confidence and renew the vigour of the economy.”
Thouigh we are unsure where there enthusiasm that a bottom is forming comes from.
And the result...
\
Charts: Bloomberg
»
- 32867 reads
- Printer-friendly version
- Send to friend
- advertisements -
Check to Yellen. The question is when will she play THE BIG PRINT card?
Yellen overheard yellin: TURN THOSE MACHINES BACK ON!!!!!!
China is irrelevant, so they say...
Last week has been evidently otherwise, no?
Toilet paper is KING!
wow, man
gold +$30 in the last 18 hours
It's priced in OK - We advise all people seated to remain so while those standing are to move slowly to the lit exit to you left. Please exit in an orderly manner. All is well and containment procedures are in place. Do not worry we are practiced in this procedure.
Commodities down over 50% and most O&G stawks down over 50%...the real GDP is negative....real jobelssness is soaring ...retail plunging...the DOW is simply catching up to reality and will drift 50% lower also.
The stawk market plunge will be very robust in keeping with the awesome rekovery.
“gold +$30 in the last 18 hours”
..wake me when it passes 1300.00
The “stunning” S&P level for me is 666.
Not to worry we are now OFF THE LOWS
this article explains the supply side of equation, but i'm wondering where all the demand is going to come from? merica, tapped out, euro, running on a trillion euros of qe? 26 countries with devalueing currencies? china, i can see only one thing; over-fucking-capacity with gargantuous investment that has mountains of debt...
I know you guys feel the same way I do....you almost hope this is the "Big One" but something inside me says not to hope for it. I have been on the edge of my seat for the past 7 years...stacking...and getting ready...I liked it...I don't think I really want it to collpase. Look at Gold...woosh...and look at the Asian markets. Yikes. Just the start.....?? We will see.
Here in NC, our regions is experiencing a drought - it seems like it hasn't rained for months, and when it finally did rain yesterday, I went and stood outside in it, like I needed that rain for my soul. I feel the same way about the coming crash - we've gone so long without it, it's been so long in coming, that part of me is going to feel similarly nourished when it finally hits. That said, I do think it's going to be bad for a lot of people - I may want the rain, but the unprepared are going to drown in it.
The crash is necessary to purge the economy and the market. It was very unhealthy for the numbnutz politicians and the greedy fed to engage in QE/stimulus/bailouts to avoid the crash. Now when what should have been a crash comes - it could easily become a frickin' singularity. Thats the cause of the uneasy feeling we all have - the economic/financial singularity forming in the backdrop.
My Obama loving neighbor just a couple weeks ago was making fun of me for staying out of the markets. He knows I am all in on PM's and would say "Hows that working out for ya..." He is an old Union retired brick layer that is saturated with Chris Mathews on MSNBC every night. Over the past 7 years during the Ron Paul attempt I tried to reach out and tell people to just listen to him. It is like screaming into a hurricane. Oh well....Fuck'em. Make sure you have like minded friends to get together with if it does go down...and get the fuck out of the inner cities. You have been warned. And if you are here reading this and you have done nothing, then you can not be taught. Appreciate ZH!
" Life is too short not to appreciate ZH. "
They are just toying with our emotions, aren't they? Big fucking tease.
I got a chuckle out of this interview:
http://video.cnbc.com/gallery/?video=3000409347
"You're addicted to housing"
These Boomers are going to get stuck with so much commercial and residential real estate and when rates start jumping they won't be able to sell, clinging to it "because real estate always goes up eventually". I bet the top is in on homebuilders, but since interest rates will keep dropping during this financial panic, home prices stay buoyed/rise for another year or two.
Awwww... but remember, down is up!
Watch Black Friday shaping up here, live, free:
http://www.investing.com/indices/us-30-futures-advanced-chart
The days of China mooching off the wealth American middle class is over!!
Trump 2016 !!
China did not mooch off of American middle class. America's middle class voted and kept voting for the sleazebag politicians who waived the flag and said they would do the best thing for America. Well the middle class got the best for the politicians, and top level management of the international corporations. Are you gonna vote for the clowns that spew the best phony rhetoric again and again?
Don't you know it has become a sophisticated science how to trick you to buy shit you don't need and is actually harmful to your health, including politicians? These sick bastards are laughing all the way to their bank vaults.
china cant mooch off them any longer, coz there aint no american middle class left to mooch off
Hey zh crowd I was shocked to see today a lot of folks bringing scrap metal at the local center to sell . They are selling before scrap goes lower
pthhhhh
Buy high, sell low.
Were they scrapping any of that "barbaric relic" metal?
Simply put...the recession( or worse) is already here...its just masked by all the intervention.
Ive got that QuEasy feelin...whoa that QuEasy feelin.....
That's Righteous, man.
It's almost like everything is not awesome.
That's an awesome comment!
whatever happens the maggots won't suffer
China in in big trouble similar to what America faced in 1929 following a period of rapid growth and credit expansion. China is already suffering from massive overcapacity. Much of the recent growth in China after 2008 came from a massive 6.6 trillion dollar stimulus program that expanded credit and poured huge amounts of money into the system. This money encouraged expansion and construction with little regard as to real demand or need. The article below delves into how the unwinding of China’s giant credit spree could be very painful.
http://brucewilds.blogspot.com/2014/03/china-and-great-credit-trap.html
Didn't help that their business model is basically "steal everything possible from the US" when the US is running out of things left to steal.
*despairs* i thought we were more like 1934 than 1929... still got years to go....
Even if one is correct in that we are more akin to 1934, there was another significant recession of 1937 that many people forget about.
Still have years to go either way.
Fed will unload early - I will watching around 11 EST if goes South - BIG TIME.
Maybe tomorrow they finally get called out.
So maybe with the Chinese dumbfuck offshore investors and the asswipe Wall Street Hedge Fund assholes who bought up all the real estate and jacked up rent prices so that people have to put their entire paycheck for a roof over their heads finally die a long desreved death we can get back to some semblence of normality whatever the fuck that means these days.
+100, despite the one extremely long sentence.
never.... in the field... of zero hedge...... snarking....... Has such a.... rambling ...incoherent rant.... been so totally ....on the bloody money...
China has made its move for the explosion.
And Russia is going to annex E Ukraine.
Now what?
S&P will be recovered by the morning. Just a knee jerk reaction. No one cares about China.
Who's going to argue with The Godfather? Salut! But you gotta kick it up a notch and take out the Black Hand first man.
and you are correct
I really felt a sense of .... awkward.....rating an article titled:
US Equity Futures Nosedive After China PMI PlungeAwesome. Nahhhhh
Perhaps finally bad news is bad news? Greek PM resigned, but I guess who cares. Imagine giving those dumb fux another 95 Billion.
They say history repeats....
but I fear we are in uncharted waters.
We're gonna need a bigger TARP
SSE just closed down 4+%. Gonna be a red day tomorrow, and I think Monday might be a bloodbath. It's very close. GL everyone.
Nah. K-Hen is on the job. Even the Europe open didn't push the low volume levitation back down. We're back to zero. As if China never happened in the USA.
So "it" is finally here? I'd love to think that's the case even though my job depends on constant growth, because after several years of seeing the can being kicked I really don't give a fuck anymore.
I stopped telling people what the ultimate outcome was in 2013 when shit just kept going on, and on, and on. There was no telling how far they could take it. To be frank I still don't buy it - I think this whole charade will last at least until next year.
And Dax reverses up 3% off the lows
Crisis averted