Update: Things are escalating quickly... Dow futures are down 450 points (down 600 from the highs)...

The initial leg down was triggered by China's Caixin PMI tumbling into contraction (lowest since May 2017) and that weakness accelerated as Europe opened with a slew of weak PMIs also (EZ worst since Feb 2016)...

Rapidly erasing last week's 'odd' pension-flow driven panic-bids...

Nasdaq futures are worst - down 2.6% from New Year's Eve close.

While there is a long way to go, this would be the worst start to a new year since 2001 for the S&P 500...

This follows weakness in China overnight... (weakest start to a year since 2006)

And European indices are tumbling, led by France's CAC...

With the stock dive prompting a sudden safe haven bid into the USD...

US Treasury yields have tumbled... with 30Y back below 3.00%

And bund yields are getting hammered - back to a 17bps handle for the first time since 2017...

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US futures markets opened overnight with a flourish, extending Monday's New Year's Eve panic-bid close. But as with all moments of excess, there is a price to be paid and the hangover has accelerated as markets head into the European open with Dow futures down 400 points from the highs...

All the major indices have reversed early gains, back to last week's lows...

And as a reminder, stoks have quiet a catch down to go if bonds are right over the Xmas holiday...