Shanghai Composite is down 1.1% on the day
As Chinese traders return from the break, further deterioration in the stock market will only serve to exacerbate a risk-off mood in trading later. US equity futures are already lower as well heading into European trading and that will set the tone as European investors enter the fray.
Along with that, the Nikkei is down 1.3% currently while the CSI 300 index and Korea's Kospi are both down 1.4% and 1.5% respectively on the day.
The only surprise is that this isn't really translating to much in the FX or bond markets. The yen and dollar are among the gainers, but it feels like it's more of the fact that other currencies are faltering. The kiwi provides a good example of that as it is the best performing major currency so far.
Meanwhile, Treasuries are slightly lower by 1 bps but have been flattish for majority of trading so far. Let's see if we'll see more of a reaction later on in trading if the negative mood remains.
