The fallout from China is reverberating across the market
This may yet just be the beginning and the real fear for the market is that contagion risks may be much wider and deeper than what is being sensed at the moment.
It all depends on how far China is willing to go in making an example of Evergrande and also its appetite to crack down further across multiple sectors in the economy.
But for now, it looks like the party is truly over for the real estate market and we are already seeing spillover effects in other key areas such as construction and now the financials in the Chinese market too (already some damage since last week).
In Asia, the Hang Seng is down 3.9% at the lunch break meanwhile US futures are pointing to a rather defensive tone as well to kick start the new week:
In FX, the dollar and yen are the two beneficiaries and although the moves are modest, I'd expect them to keep up in the session ahead. Do not say you've not been warned: