Global stock markets have fallen sharply on a cocktail of worries led by a potential crisis brewing in China – and added to by gas supply concerns in Europe.

Fears over the future of Chinese property giant Evergrande – and the possibility that its problems could have wider knock-on effects in the world’s second biggest economy – sent Asian markets sharply lower overnight.

Stock indices in Europe followed suit, with France’s Cac 40 and Germany’s Dax each losing about 2% of their value and Wall Street also heading south later, with New York’s Dow Jones down by 2% too.

Worries about Evergrande have been growing as it scrambles to raise funds to pay its lenders, suppliers and investors.

Regulators have warned that its $305bn of liabilities could spark broader risks to China’s financial system if its debts are not stabilised.

Some observers have expressed worries that the fall-out from the crisis might prove to be a “Lehman moment” for the country – drawing parallels with the collapse of US investment bank Lehman Brothers more than a decade ago, which sparked a wider financial crisis.

More broadly, investors are also fretting about the impact of rising coronavirus cases and growing inflation on the recovery of global economies from the coronavirus crisis.

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With growth slowing it raises the spectre of “stagflation” – the possibility of the economy stagnating while at the same time prices spiral.

A gas price crisis across Europe, which has put pressure on smaller UK energy suppliers and has also been having knock-on effects for food supply, is only adding to the inflation worries.

In London mining giants such as Anglo American and Antofagasta – whose fortunes are partly dependent on China’s demand for the commodities they produce – were among stocks sliding on Monday.

Those losses were partly offset by the impact of the US easing transatlantic travel rules, which provided lift-off for British Airways owner International Airlines Group – up 11% – and engine maker Rolls-Royce – which gained 4%.

But the FTSE 100 still ended the session nearly 1% lower, at a two-month low.

Elsewhere the generally risk-averse mood also hit the oil price, which dipped below $74 a barrel, and the pound, which fell by about a cent against the US dollar to less than $1.37.

Cryptocurrencies also felt the impact of the downbeat sentiment among investors, with Bitcoin about 5% lower.

Russ Mould, investment director at AJ Bell, said: “There’s plenty for the market to fret about and those arguing the markets were looking frothy are seeing some of that froth disappear as a brewing crisis in China, surging gas prices in Europe and concerns about stagflation combine to sink stocks.”

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