Futures Bounce On Stronger Europe Headline PMIs Despite Markit’s Warning Of “Darker Picture” In “Anaemic” Internals

Perhaps the most interesting question from late yesterday is just how did the Chinese PMI rebound from 50.4 to 50.2, when the bulk of its most important forward-looking components, New Orders, Output, New Export Orders…

… posted a material deterioration? When asked, not even Markit could provide an explanation that seemed remotely reasonable so we can only assume the headline was goalseeked purely for the kneejerk reaction benefit of various algos that only focus on the headline and nothing else. Luckily, we didn’t have much time to ponder this quandary as a few hours later we got the latest batch of Eurozone PMI numbers.
The reason the PMI “soft-data” surveys are relevant, if mostly again for the benefit of kneejerk reacting algos, is because as Deutsche Bank said, “These real time numbers are clearly going to be important at the moment with many fearing an inflexion point in the global data.” So what better way to instill some confidence in a triple-dipping Europe, if only on actual “hard” data, than by providing cherry-picked, seasonally adjusted survey responses.

This post was published at Zero Hedge on 10/23/2014.