Tuesday, November 22, 2011

Futures Blasted on Dexia Woes ... and Poor Preliminary China HSBC PMI Data

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In between watching all the humor on CNN, we are seeing a rip roaring kick to the guts in the futures market tonight.  That 1180ish level that was holding the past two days is being ripped to shreds as the S&P 500 is sniffing at 1170 as bad news circles in from the globe.   As I mentioned mid day, that IMF news would be forgotten within 30 minutes and was a non starter.

The flash (read: preliminary) reading of PMI in China via HSBC is contractionary at 48, down from 51.  This is a 32 month low.  Asian stocks are being hit quite hard.

  • HSBC's initial "flash" reading of its China manufacturing survey fell to a contractionary reading of 48.0 for November, well below forecast and swinging from a mildly expansionary 51.0 reading for October. Forecasts for the HSBC flash manufacturing Purchasing Managers Index had called for a 50.1 result, just about the 50 level that separates expansion from contraction. The flash PMI includes roughly 85%-90% of total responses which comprise the final version, due out next week.

Outside of that worries over Belgium bank Dexia are resurfacing.

Bigger picture, as we said once S&P 1206 was broken, this is no market for heroes.  Duck and cover.  This is shaping up for one of the worst Turkey week's ever for markets.


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