China Flash PMI Prints 'Not Bad Enough' But Still In Contraction For 11 Months

Tyler Durden's picture

September's HSBC China Flash PMI just printed at 47.8, a slight beat of the final August print at 47.6 but still below 50 - for the eleventh month in a row. With only one month of expansion according to this data since June of last year, it seems more reverse repos are ahead (since as we already discussed in detail here - they are caught between a rock and a hard place on easing as the economy 'supposedly' transitions not-so-softly). Market reaction to this potentially good-is-bad data print (i.e. not cold enough to warrant massive China stimulus) is USD strength, EUR weakness, and modest S&P futures selling pressure.



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Dr. Sandi's picture

Is this the beginning of the Great Chinese Takeout?

Mark Carney's picture

Ruh roh!

MOAR gord and sirver !!!!!

slaughterer's picture

Another reason to pull Brent towards 100 and WTi towards 85.  

eigenvalue's picture

The metals are more vulnerable towards China's hard landing than oil. However, their prices are pretty stiff right now.

Conman's picture

Cue some Fed president to remind everyone how many tools they still have.

otto skorzeny's picture

I can think of a few tools they have-Krugman,Hilsenrath,Timmy G.,etc.

JPM Hater001's picture

It's called a double entendre MDB.

Yen Cross's picture

 Man the " Markets " front ran that print!  Qe-all,in is losing It's half life "at light speed'!

  I'm buying ,aud fster than they can spend it! The RBA (rate cut 25 basis points) factored in.

 Won't happen until November!

lolmao500's picture

One more month of peace... right?

If not, then read what's ahead... and shit your pants in the process.

When the China Bubble Bursts

Alaska F-22s deployed to Pacific even as tensions escalate between China, Japan 40 F-22s now in Guam...
MeanReversion's picture

Frankly this is a steaming pile of horse manure.  A surprise (perhaps biological) attack on the U.S.?  The concept of mutually assured destruction applies here, militarily and more importantly, economically.  The U.S. and China are in an uncomfortable symbiotic relationship.  They need each other, much like a heroin addict needs a heroin dealer, and vice versa.  The U.S. is a consumer economy and China produces those goods.  Any military conflict would likely cause immediate shut down of the economic relationship which destroy the Chinese economy putting China in an even worse economic situation.  China's biggest fear is not the U.S., but civil unrest, which would surely erupt as the natural consequence of this delusional scenario.  

Yen Cross's picture

 I'm out, no more trading tips, until Europe. Gotta make sure my ducks are in a row!

Park city skier's picture

PMI didn't climb. Preliminary Aug Flash PMI came in at 47.8 last month as tonight. It was revised lower later and I'm sure this month will be revised lower too. No improvement noted from last month. 

chump666's picture

USDs bid, Asia selling, Shanghai collapsing = sell off (usually)Euro/US markets

But what the hell is going on with the oil price?  Strange trading.

Julian's picture

Stet/ -   "Market reaction to this...." should read "algo reaction to this..." ; there's no such thing as a market anymore.....

jonjon831983's picture

Someone posted this:


"Japan's exports fall, trade deficit widens"


Hmm, near the bottom of the short article: "Exports to the European Union fell 22.9%. " and fell 9.9% to China.  Up 10.3% to USA.

Nobody For President's picture

China has a plan: Begin economic warfare with Japan.

Makes as much sense as QEinfinity...

spanish inquisition's picture

Been working on a theory. All of the rehypothocated gold, steel, et al, is secretly being moved to Second Life where people are living rehypothocated lives. Still trying to figure out the end game, the big question is where does a rehypothicated soul go when it dies. Am going to do some research and review some PKD to firm things up.