By Michael Msika, Bloomberg Markets Live reporter and strategist
Tuesday’s selloff in global equity markets highlighted the risk of high exposure to stocks at a time when markets are historically volatile.
Despite the latest pullback, Europe's Stoxx 600 is still up nearly 7% since the August lows hit during the global tumult. The recent bullish bets have been fueled by a high conviction that the Federal Reserve will cut interest rates this month by as much as 50 basis points, in addition to confidence in the resilience of the US economy. Yet, September usually is the most treacherous month for stocks and jobs data due later this week could flip the narrative again.
