Following the missed expectations of the Manufacturing PMIs in China, it appears 'reform' is having the exact slow-growth-inducing credit-creation-dampening effects many had worried about (but dismissed because - well the Fed has our back right?). HSBC's China Services PMI slumped by its most in 8 months to its lowest level since August 2011 (the 2nd worst level since the data began). New business expansion in particular dropped to its lowest level in 6 months and while labor market conditions improved marginally, HSBC - desperate to cling to some silver lining - noted the Composite PMI remains above 50 (phew) - adding "we expect the steady expansion of manufacturing sectors to lend support to service sector growth..." or not. Markets are disappointed...

This is also the slowest 'expansion' of Services relative to Manufacturing since April 2011

It seems JPY and US equities need Bernanke to start talking again very soon!!!