European indices are down by over 2% currently
The term 'selloff' is one that is used quite frequently these days but as major stock indices reach record highs and fall off, I'd much prefer the term 'pullback'.
Either way, you can coin it however you want, but the more frequent retracement lower is one that investors may have to get used to as volatility starts to work both ways now amid the inflation and central bank tapering debate.
For today, it doesn't quite feel like a heavy day but it really is for Europe as major indices are suffering one of their worst days this year:
- Eurostoxx -2.3%
- Germany DAX -2.4%
- France CAC 40 -2.1%
- UK FTSE -2.3%
- Spain IBEX -1.6%
- Italy FTSE MIB -2.0%
Adding to that is the poor showing by US futures during the session too:
Oil is down 0.9% as well today but that aside, the risk pullback seems rather confined to equities for the time being. The bond market is steady and major currencies are seemingly disinterested with everything else that is happening today.
That said, US traders will have the final say so we'll see what happens when Wall St enters.
