Global shares tumble on spreading Evergrange contagion fears

<p>Kia ora, </p><p>Welcome to Tuesday's Economy Watch where we follow the economic events and trends that affect New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news of a big bump in the road today.</p><p>Worries about spreading contagion from troubles in China’s property market is sending global equity markets into their steepest decline in months.</p><p>But the sentiment fall is broad, affecting currencies, interest rates, and commodities.</p><p>Meanwhile, Canada is <a href="https://newsinteractives.cbc.ca/elections/federal/2021/results/" target="_blank"><strong>voting today</strong></a> in Federal elections that could well tip their internationally-popular prime minister out of office on the basis that he has been ineffective at home. Canada's currency is falling.</p><p>And the market sell-off comes as both Japan and China have had long holiday weekends. But that has not stopped angry investors in property developer Evergrande turning out to continue their besieging of the company's offices, even holding some managers hostage. The firm can't sell assets fast enough to service its impending bond payment obligations. <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0914/2021091400059.pdf" target="_blank"><strong>The company blamed</strong></a> "ongoing negative media reports" that "have dampened the confidence of potential property purchasers". There is no sign yet of a Beijing bailout.</p><p>China's central bank is to issue a regular policy statement tomorrow and it may move to try and quell the crisis. The US Fed will be watching closely too, and they report in next on Thursday.</p><p>Elsewhere in the world there was not a lot of economic data released, but one lone bit deserves attention - <a href="https://www.destatis.de/EN/Press/2021/09/PE21_442_61241.html;jsessionid=1E0EDEF2B5EF17B212D06A7ED71ED97C.live731" target="_blank"><strong>German producer prices</strong></a>. They rose much more than expected in August, and are