Benzinga Market Primer, Thursday September 20

U.S. equity futures slipped in early Thursday trading as global growth fears once again dominated markets. Despite massive amounts of new central bank liquidity, investors remain skeptical that the global economy can rebound to post-financial crisis levels. HSBC released their Chinese Manufacturing PMI, showing a slowing pace of contraction but still a contraction as the PMI printed at 47.8, up from the previous 47.6. Also, the Eurozone services PMI slipped to 46.0 from 47.2 and missing expectations of 47.4. Lastly, the Eurozone manufacturing PMI slipped to the lowest level since June of 2009 at 45.9, falling from 46.3.

In other news around the markets:

• French manufacturing and services PMI's dropped precipitously in the latest reading, as the services PMI dropped to 46.1 from 49.2 and the manufacturing PMI slipped to 42.6 from 46.0. The large drops do not bode well for France's economy, the Eurozone's second largest.


• The IMF sees 3.25 percent GDP growth in Australia this year, painting favorable outlook for the resource-rich nation's economy.


• Gary Shilling, famed bond investor, said that he sees a hard landing in China in a Bloomberg interview.


• Bank of America BAC plans to slash another 16,000 jobs as the company tries to cut costs to improve performance.


• Norfolk Southern NSC slashed third quarter earnings guidance to $1.18-$1.25 per share from previous estimates of $1.63.


• Spain issued new 10-year bonds at low yields of 5.666% vs. the previous auction's 6.647 percent.


• S&P 500 futures fell 3.1 points to 1,450.1.


• The EUR/USD traded lower pre-market to 1.2940.


• Spanish 10-year government bond yields rose in secondary market trading despite the stronger auction, with yields climbing to 5.749 percent.


• Italian 10-year government bond yields rose to 4.992 percent.


• Gold traded lower by 0.49 percent to $1,763.00 per ounce.

Asian shares were weak in the overnight session following the Chinese PMI data. The Japanese Nikkei fell 1.57 percent in Tokyo and the Shanghai Composite Index fell more than two percent to the lowest level since the depths of the financial crisis in 2009. The Hang Seng Index fell 1.2 percent and the Korean Kospi fell 0.87 percent. In Europe, shares traded lower on the weak PMI data. Spain's Ibex fell 1.14 percent and the Italian MIB Index slipped 1.34 percent in early European trade. The German Dax fell 0.42 percent and the French CAC fell 0.63 percent while the U.K. FTSE 100 fell 0.63 percent.

Commodities continued to trade weaker in early Thursday trading. WTI Crude futures slipped a further 0.58 percent in early trading to $91.45 per barrel after touching levels near $100.00 per barrel just last week. Brent Crude futures also continued declines, as the price fell 0.33 percent to $107.83. Copper futures slipped 1.73 percent to $374.80 per pound on the weak Chinese data, as weak manufacturing output could correlate to lower copper demand. Gold fell in early trading and silver fell 0.7 percent to $34.345 per ounce.

Currencies showed dollar strength and had a clear risk-off feel as investors sold the Aussie dollar and the New Zealand dollar and bought the U.S. dollar. The Dollar Index rose 0.63 percent on strength against the euro, the the pound, the Aussie, and the New Zealand dollar. The euro was also fairly weak in early trading, losing ground to the pound and the yen along with the greenback but gaining against the Aussie and New Zealand dollars. The EUR/CHF also continued its move lower back towards the 1.20 peg.

Notable stocks moving in the pre-market included Carmax KMX and Norfolk Southern NSC. Carmax gained nearly 5 percent in the pre-market after reporting earnings this morning and Norfolk Southern fell on the guidance cut. United States Steel X was also weak in the pre-markets, as steel prices slipped on the weak Chinese data as investors fear that demand for metals in China may decline further.

Conagra Foods CAG reported earnings this morning that beat analysts' expectations both on the top and bottom lines. Notable companies reporting earnings later Thursday include Jefferies Group JEF and Oracle ORCL.

In economics, it's Thursday and that means jobless claims are due out at 8:30 am EST. Economists are expecting a reading of 373 thousand new claims, less than last week's 382 thousand. Also, the flash U.S. Markit PMI and the Philadelphia Fed Survey will help to clarify the growth situation in the U.S. as investors hope to see a post-summer rebound in the U.S. economy begin. Also due out are the Conference Board's leading indicators. In addition, Eric Rosengren, Dennis Lockhart, Naryana Kocherlakota, Sandra Pinalto, and James Bullard, all of the Fed, are set to speak today.

Good luck and good trading.