The market is nervous about the Evergrande situation
That being said, just be wary that holidays in China itself, Japan, South Korea, and Taiwan may have exacerbated the anxiety and fear in Asia Pacific trading today amid thinner trading conditions. Still, the situation is rather tense and warrants attention.
As mentioned earlier, the real fear is that contagion risks will run much wider and deeper as the fallout may not necessarily be just an Evergrande thing. China is also cracking down heavily on other key sectors in the economy so this may just be the tip of the iceberg.
Of course, other companies will surely not be as heavily indebted as Evergrande but there is still cause for concern if China is looking towards a 'hard reset' of its economy.
I don't expect the mood to lighten in Europe so look towards Wall Street for any potential shift in sentiment. Otherwise, it looks like risk trades are in for a rough start to the week and perhaps staying that way until we get to the Fed on Wednesday.