Global Economic Concerns Heighten

November 23, 2011 12:09 AM

What Traders are Talking About:

* Preliminary Chinese PMI data sparks more global economic fears. China's flash purchasing managers' index (PMI) slumped to 48 in November -- the lowest reading since March 2009. The bigger-than-expected slump in factory activity signals China's manufacturing sector is contracting (any reading under 50 signifies contraction) and indicates euro-zone economic woes are having a broader global impact. Final PMI results typically come in stronger than the initial reading, but there's little doubt China's factory activity is slowing -- and contracting.

The long and short of it: This data was the latest fuel to be added to the global economic fire. Investors are becoming increasingly concerned of a global economic recession.

* No surprise, France now getting more attention in euro-zone. Concerns are rising France will be the next euro-zone country to be sucked into the euro-zone mess. There are concerns with France's triple-A credit rating after a report suggested France may bear a larger burden in the regions' bailout. Meanwhile, Italian and Spanish bond yields continue to rise. And there was poor demand at a German bond auction.

The long and short of it: Dragging France into the fray is significant as the country's is the second largest economy in the euro-zone.

* Happy Thanksgiving! Grain and livestock markets will trade normal hours today. All markets are closed for Thanksgiving Thursday. Grain and livestock markets will trade an abbreviated session Friday.

The long and short of it: Amid all of the economic turmoil around the world, there's still a lot to be thankful for. Have a joyous and safe Thanksgiving.


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