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.