Risk sentiment remains tilted to the softer side
European indices are down over 2% on the day now with US futures also losing further ground, marked lower by a little over 1%:
The Hang Seng closes the day down by 3.3% but while not at the lows, it is still a torrid day for Chinese-related stocks to kick start the week.
Evergrande may be the poster boy but there are spillovers observed domestically. Chinese real estate developer, Sinic, plunged by 87% (!) today before trading was suspended.
The company saw its outlook downgraded to negative by Fitch and S&P previously but the anxiety and fear only really kicked in today amid the Evergrande focus.
Expect these negative tones to continue through to US trading but as always the case, the story may play out differently when Wall Street enters the fray.
That being said, if there's ever an excuse for equity bulls to take some money off the table, China fears are as good as any to really trigger a correction.
