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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.

  • *SHANGHAI COMPOSITE INDEX FALLS 1%, APPROACHES 2009 LOW

 

 


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Wed, 09/19/2012 - 22:50 | Link to Comment Dr. Sandi
Dr. Sandi's picture

Is this the beginning of the Great Chinese Takeout?

Wed, 09/19/2012 - 22:55 | Link to Comment Mark Carney
Mark Carney's picture

Ruh roh!

MOAR gord and sirver !!!!!

Thu, 09/20/2012 - 00:43 | Link to Comment s n p
s n p's picture

good one

Wed, 09/19/2012 - 22:58 | Link to Comment slaughterer
slaughterer's picture

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

Wed, 09/19/2012 - 23:04 | Link to Comment eigenvalue
eigenvalue's picture

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

Wed, 09/19/2012 - 22:52 | Link to Comment Conman
Conman's picture

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

Wed, 09/19/2012 - 23:01 | Link to Comment otto skorzeny
otto skorzeny's picture

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

Thu, 09/20/2012 - 08:21 | Link to Comment JPM Hater001
JPM Hater001's picture

It's called a double entendre MDB.

Wed, 09/19/2012 - 22:59 | Link to Comment Yen Cross
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!

Wed, 09/19/2012 - 23:04 | Link to Comment lolmao500
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

http://www.financialsense.com/contributors/jr-nyquist/2011/09/06/when-th...

Alaska F-22s deployed to Pacific even as tensions escalate between China, Japan

http://www.alaskadispatch.com/article/alaska-f-22s-deployed-pacific-even... 40 F-22s now in Guam...
Thu, 09/20/2012 - 02:21 | Link to Comment MeanReversion
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.  

Wed, 09/19/2012 - 23:10 | Link to Comment Yen Cross
Yen Cross's picture

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

Wed, 09/19/2012 - 23:11 | Link to Comment Park city skier
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. 


Wed, 09/19/2012 - 23:38 | Link to Comment chump666
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.

Thu, 09/20/2012 - 00:16 | Link to Comment Julian
Julian's picture

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

Thu, 09/20/2012 - 00:55 | Link to Comment jonjon831983
jonjon831983's picture

Someone posted this:

 

"Japan's exports fall, trade deficit widens"

http://www.marketwatch.com/story/japans-exports-fall-trade-deficit-widen...

 

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.

Thu, 09/20/2012 - 03:21 | Link to Comment Nobody For President
Nobody For President's picture

China has a plan: Begin economic warfare with Japan.

Makes as much sense as QEinfinity...

Thu, 09/20/2012 - 08:23 | Link to Comment spanish inquisition
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.

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