Equities are still being sold today, like they have been all week. The current losses are being considered while examining the performance of European indices for the week.

This is not just limited to Europe as Wall Street has also experienced a series of losses since last Friday.

This week, there are a few events that may be affecting mood. Firstly, China’s stimulus plan has been regarded as underwhelming, as investors were hoping for more from Beijing. Additionally, yesterday’s UK inflation data was higher than anticipated, leading to concerns about long-lasting price increases in Europe.

Furthermore, the overall effects of increased interest rates are negatively impacting credit conditions and casting a shadow on the economic forecast for the year. In light of China’s inability to fuel global growth, the prospect for the remainder of the year appears less than hopeful.

Alternatively, the reason for the sell-off may be easily explained by a shift in risk allocation from equities to bonds as the end of the quarter approaches, leading to increased flows. The stock market had a successful Q2, so it’s possible that this shift is simply a natural market rebalancing in the later part of June.

It’s possible to make a case for either viewpoint and the selling could be influenced by both factors. This is making things quite challenging towards the end of the week, especially with more emphasis on reaching end-of-month and end-of-quarter goals next week.

“What do you think about this issue?”