The sour mood in Chinese markets is reverberating
At the lows in the past 20 minutes, the Hang Seng index was dragged down by over 5% and looks set for a real ugly close as fears surrounding regulatory measures on the tech and property sectors in particular are weighing.
Adding to a crackdown on the education sector as well, Chinese equities are experiencing a real bloodbath to start the new week and that is starting to reverberate elsewhere.
US futures are down by 0.4% to 0.6% now and we’re seeing a flight to safety take place with Treasuries bid; 10-year yields falling 3 bps to 1.245%.
That is pinning USD/JPY at the lows near 110.00 with commodity currencies also pressured as the dollar also advances against the rest of the major currencies bloc.