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Futures Soar After Chinese Composite PMI Drops To Lowest On Record
Chinese markets may be closed for the next week due to a national holiday but China's goalseeked manufacturing survey(s), which were the most anticipated data points of the evening, came right on schedule (or rather, were leaked just ahead of schedule). And they certainly did not disappoint in their disappointment.
First, it was the official NBS September PMI, which at 49.8 was the smallest possible fraction above both the previous and expected, both of which were 49.7. The number was leaked about 6 minutes before the official statement, and while the leaked print which all humans were aware of well before the official release time at 9pm Eastern, had no impact on markets, it was the flashing red headline which confirmed the leak and which was read by machine-reading algos everywhere, that sent the E-mini spasming higher.
But while the official "data" was bad, and confirmed the economy remains in contraction, the Caixin - aka the new HSBC - Markit PMIs were absolutely atrocious.
We bring you... the HSBC Manufacturing print, which dropped from 47.3 to 47.2, and which according to Caixin was the lowest print since March 2009.

From the report:
A key factor weighing on the headline index was a sharper contraction of manufacturing output in September. According to panellists,
worsening business conditions and subdued client demand had led firms to cut their production schedules. Weaker customer demand was highlighted by a further fall in total new orders placed at Chinese goods producers in September. Furthermore, the rate of reduction was the steepest seen for just over three years. Data suggested that the faster decline in total new business partly stemmed from a sharper fall in new export work. The latest survey showed new orders from abroad declined at the quickest rate since March 2009.
The job market continued to be a disaster:
Reflective of lower workloads, manufacturing companies cut their staff numbers again in September. Moreover, the latest reduction in employment was the fastest seen in 80 months. Meanwhile, reduced production capacity led to an increased amount of unfinished work, though the pace of backlog accumulation was only slight.
And then there's deflation:
Manufacturing companies noted a further steep decline in average cost burdens during September. Furthermore, the rate of deflation was the sharpest seen since April. Reports from panellists mentioned that lower raw material prices, particularly for oil-related products, had cut overall input costs. Increased competition for new work led manufacturing companies to generally pass on their savings to clients, as highlighted by a solid decline in output charges.
Summarizing the finding: Production cut at quickest rate since March 2009; Total new orders contract at sharper rate amid steeper downturn in new export business; Worst deflation since April; job shedding accelerates to 80-month record, and so on.
At the same time, the Service PMI was also released which at 50.5, was a drop of 1 point from the 51.5 in August, and was the lowest since July 2014, with the prices charged index in full deflationary collapse, tumbling from 51.4 to 48.5, the lowest since June 2012, with the outstanding business index was the lowest since last November. In short: another disaster.
And it was the combination of the two indices that told the full story: at 48.0, the Caixin Composite index dropped from 48.8, down from 52.3 a year ago and was the lowest print on record.
So with another month of atrocious manufacturing and service survey data released what do futures do? Why they soar of course, with the ES now up nearly 20 points from its overnight lows, and touching on 1920.

Why? Who knows - futs would have likely soared if the data was good, but wild guess here, because the Chinese economy is in such a dire state of uncontrollable freefall, someone, somewhere has to print more and make the rich even richer.
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Watch the Forex shuffle. You'll figure it out. Quantitative Expense shell game.
and of course that which is printed will never be put to productive economic use
The S&P500 4h chart shows a pattern of Negative Reversal (RSI Higher highs while Price sets Lower Highs). Target Price is 1850 and 1830.
http://tripstrading.com/2015/10/01/sp500-negative-reversal-rsi-4h-chart-and-putcall/
Pure insanity. The markets are so rigged the ones doing the manipulating don't even attempt to fly under the radar anymore. It would be funny if it wasn't just plain sad watching these sick hubris filled central banker pole smokers ruin the financial system across the entire planet.
This is why I buy gold, silver, food, ammo and whiskey.
The Chinese composite could be a hot turd that dropped out of Yellen's pants . . . it doesn't matter, they will spin anything they can dream up to prop up the markets with their phoney electronic dollars.
And this will continue until the manufacturing coountries tell us to put those dollars back where the sun doesn't shine . . . .
Be careful the police report could read: "Drunk man dies while cleaning loaded gun" of course the shiny stuff will have to be confiscated.
Moar Tesla X's all 'round! No end to the free money party!
... and by "all 'round" I mean only for those who can afford to pay $140000+ for a car that can travel 250 miles before it needs to stop for an hour or more.
Please, don't get me going. The whole Tesla/electric car/Obama/subsidy/clean as in not/conservation/pollution thing has just about everything wrong that can be wrong in just about every way possible.
PS The press is saying that the data print form China is stronger than expected and everything is looking kinda great. Squinty, but great.
I know I was reading about it yesterday, fucking nuts.
like mom always said...you are a very bad boy, which is very good...we had a weird family...
GARTMAN!
Wasn't the HSBC banned to report these? Is there a cutoff date?
Nothing makes sense any more. Which now makes sense.
Kerry Tells Russia Not To Strike Al Qaeda and ISIS.
http://thepeoplescube.com/peoples-blog/kerry-tells-russia-not-to-strike-...
Putin tells Kerry to suck a bag of dicks
https://PutintellsKerryToSuck-A-Bag-Of-Dicks
Atomizer, your link is broken, this should work: http://thepeoplescube.com/peoples-blog/kerry-tells-russia-not-to-strike-...
These fucking games are getting old!
Hmmmm, they must have revised Aug to 47.0, becuse it now looks like the number goes up from lst month, mybe they refigured it for summer being such a bad time for accurate data. I don't trust China's data anyhow. And, now we are up 15 pts....
It's different this time. </sarc>
FUNDERMENTALS!!!!
Bend over Coxin!
Can you feel it now? Cox in.
The Fed's plunge protection team is doing the rigging buying stocks. Even when the data is bad PPT still buys stocks.
Audit the Fed !!
it is so neat to watch an economy work the way it is supposed to with all the decreasing demand, more competition, declining costs in materials and labor, cost cutting talk.
I'm watching the weather forecasting for what is now Cat 3 Hurricane Joaquin, and they've all been wrong by huge amounts https://twitter.com/wxbrad/status/649438797453762560
could not help but to be reminded of GDP forecasting
Zerohedge once made a comment on twitter; 'have we reached peak bullshit'?
To which I responded: Whoa, whoa, whoa, WHOA. I mean, whoa. Let's not go too far here. (Or something like that).
Because there's always more bullshit right?
I think this, this 'is' peak bullshit!!!!
Bad news are good news again, so surely we are "around the corner" now, right?
HAHAHAHAAAA, what a $#¡† $#øw...
i think the selling into this false strength will presist.
lower highs and lower lows as the charts are screaming.
real sellers are cashing out. think corp bond financing buying stock and insiders cashing out.
not to mention layoffs at cat, ect...
patience, another 1000 pt whooosh a coming-inevitable...
What lower highs? The market was up yesterday and appears to be about to put in a 300 dow day.
dropped from 47.3 to 47.2
So That is now called "uncontrollable freefall".
What are you guys smoking??