US Equity Futures, Yuan Plunge After China Manufacturing PMI Collapses To March 2009 Lows

Tyler Durden's picture

US equity futures plunged (Dow -140)

*  *  *

Following Xi's earlier speech reassuring Yellen that the "Chinese economy is stable," and the Yuan tumbled 0.25% against the USD ahead of the data. China's Flash Manufacturing PMI printed a disastrous 47.0 (against expectations of a slight rise to 47.5 from August's 47.3). This is the lowest print since March 2009.

The Yuan was tumbling heading into the data...

  • *OFFSHORE YUAN DROPS 0.25% VS DOLLAR BEFORE CHINA CAIXIN PMI

Then the data hit..

  • *CHINA CAIXIN FLASH MANUFACTURING PMI AT LOWEST SINCE MARCH 2009
  • *CHINA SEPT. CAIXIN FLASH MANUFACTURING PMI AT 47; EST. 47.5

 

With across the board weakness...

 

Commenting on the Flash China General Manufacturing PMI™ data, Dr. He Fan, Chief Economist at Caixin Insight Group said:

“The Caixin Flash China General Manufacturing PMI for September is 47.0, down from 47.3 in August. The decline indicates the nation’s manufacturing industry has reached a crucial stage in the structural transformation process. Overall, the fundamentals are good. The principle reason for the weakening of manufacturing is tied to previous changes in factors related to external demand and prices. Fiscal expenditures surged in August, pointing to stronger government efforts on the fiscal policy front. Patience may be needed for policies designed to promote stabilization to demonstrate their effectiveness.

 

 

Charts: Bloomberg

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MonetaryDigitalis's picture

Central banking fails. Always. Everywhere.

billwilson's picture

But ... "overall the fundamentals are good" !!!!  Who does he think he is fooling.?

NoDebt's picture

Only the gullible and self-deluded.  I think 'ol Bill W. himself might take a drink if he knew what was coming.  And that dude dragged himself out of alcoholism in the middle of the Great Depression.  Not that I would know anything about that sort of stuff.

 

BlueStreet's picture

"Patience may be needed for policies designed to promote stabilization to demonstrate their effectiveness.

 

Don't worry Dr. Fan the bears have plenty of patience. Take your time. 

Jlasoon's picture

Can you imagine the non-manipulated number 

Turin Turambar's picture

Okay, let's see... in order:

 

 

1.  USDJPY ramp

2.  ramp oil

3.  PPT buying S&P futures

There, that ought to be good for a green open tomorrow morning.  /sarc

Tim Knight from Slope of Hope's picture

Oil isn't ABOUT to ramp; Gartman's bullish. Some laws of nature cannot be repealed.

The Bell Rang's picture

All together now....Bullish...MOOORRREEE   Stimulas........LOL

FreedomGuy's picture

Time for more ghost cities and the GDP they generate. We might just get housing for every person in the world. Unfortunately, it will all be in China. 

Xscream's picture

some dick weed was on bloomberg radio for 20 minutes thia afternoon explaining why everything is awesome according to the chinese biege book numbers..think he had a PHD in his title to.  global sell off of stocks seems to have begun. oh well i just watch the non sense anymore. to old to be in stocks    party on wayne ..........

Xscream's picture

some dick weed was on bloomberg radio for 20 minutes thia afternoon explaining why everything is awesome according to the chinese biege book numbers..think he had a PHD in his title to.  global sell off of stocks seems to have begun. oh well i just watch the non sense anymore. to old to be in stocks    party on wayne ..........

CHoward's picture

This whole shit show is really and I mean REALLY starting to stink!!

Vlad the Inhaler's picture

Who was it that recently said on TV, if you beleive the numbers coming out of China, then you beleive in Santa Claus.

franzpick's picture

DJIA and SPX futures already down a % tonight, and today's deadly 20 day coil-breakout-reversed pattern, point to 15k and 1800 handles tomorrow, and for the near future, well, until they head into the 14k / 1700 areas. Front row seats for the live danse macabre of the equities are available free here:

http://www.investing.com/indices/us-30-futures-advanced-chart

 

general ambivalent's picture

So what time does CERN release the million Planet X monkeys to BTFD?

lester1's picture

The Fed's PPT will be working overtime tomorrow buying up stocks via a ghost account at Goldman Sachs to try and stop a stock market rout.

 

Audit the Fed !!!!!

holdbuysell's picture

The Day of Atonement arrives in 5 mins EDT. Expect an interesting Jubilee year.

Omega_Man's picture

Newton considered himself to be one of a select group of individuals who were specially chosen by God for the task of understanding Biblical scripture.[18] He was a strong believer in prophetic interpretation of the Bible, Newton's belief led him to write several treatises on the subject, including an unpublished guide for prophetic interpretation entitled Rules for interpreting the words & language in Scripture. In this manuscript he details the necessary requirements for what he considered to be the proper interpretation of the Bible. Philosopher's Stone, hieroglyphical figures, early forms of tarot, and occultism. Artephius, and his "secret book", were also subjects of interest to 17th century alchemists.At the auction many of these documents were purchased by economist John Maynard Keynes, who throughout his life collected many of Newton's alchemical writings. Much of the Keynes collection later passed to eccentric document collector Abraham Yahuda,Many of the documents collected by Keynes and Yahuda are now in the Jewish National and University Library in Jerusalem

dust to dust's picture

 Getting the fiats worth on the these critical targets.

salmank's picture

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Black Hole

redd_green's picture

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redd_green's picture

China's Flash Manufacturing PMI printed a disastrous 47.0

 

No.  3 would be disastrous. 47 is cyclical.  They still have all the fucking factories.  You can not buy a fucking TOOTHBRUSH made in the USA.  Nothing.   So, who gives a fucking shit.  Let China roll off into the ocean.

Oldwood's picture

There is no doubt that we be fucked, but owning all the factories in a world where nobody wants nor can afford anything is not a giant plus in their column. The problem modern manufacturers have is outside of buildings, manufacturing equipment has a relatively short shelf life.

I have an industrial cnc machine about twenty years old. I purchased it used 15 years ago for $60k. It is still in excellent condition and I can't sell it for $2k today. Perfectly functional, the only problem being the controller is "obsolete" even though it does everything a new one does, just not as "slick". I can only imagine that the newer equipment fades even faster. What is a two year old smart phone worth?

Modern technology is hinged on support and like everything else, support is what is always lacking. New equipment brings support with it. A five year old system...not so much. Every year machinery manufacturers are introducing changes that make last years model obsolete and extremely expensive to service.

Wahooo's picture

He actually said that?  Reminds me of the time the Chinese MBA class went RFLMAO after Geithner told them treasuries were a great value.