(Bloomberg) — A selloff on Wall Street went global as investors grappled with the threat of higher-for-longer interest rates, China’s sluggish economy and an Israeli counter-strike.
Most Read from Bloomberg
The Stoxx Europe 600 Index sank 1.5%, echoing moves in Asian and US equities. The worry among strategists is that after a stellar start of the year, investors have become so resoundingly bullish that there’s not a lot of additional buying power left to propel markets further. The latest Bank of America Corp. survey found fund managers’ allocation to equities has hit the highest in over two years.
Plus, economic data continues to underscores US economic strength while conflict in the Mideast fans the risk of higher energy prices and inflation, frustrating hopes for imminent US interest rate cuts. With earnings season underway, there’s growing concern that the mega-cap leaders…
