Cash shifts pull rug under equity markets – strategists
A sudden drop in U.S. stocks at the end of last week that morphed into widespread weakness in global markets on Monday can be traced to abrupt shifts to large pools of central bank liquidity rather than hawkish rhetoric from global policymakers. In a note published on Monday, Matt King, a global markets strategist at Citibank, noted that reserves at the U.S. Federal Reserve fell by $460 billion last week, the single biggest weekly drop on record. U.S. stocks are set for a rough start to this week with index futures down 1%.
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