The S&P 500 is likely to fall by 20-25 percent over the next three months according to Nomura strategist Bob Janjuah.
European stocks are expected to open flat on Tuesday ahead of a report on the Spanish banking industry and a raft of earnings from across Europe before the opening bell.
As investors prepare for another trading week, stocks are in risk mode on expectations that euro zone policy makers will do whatever it takes to preserve the euro.
European stocks are expected to open sharply higher on Monday on hopes that the European Central Bank and U.S. Federal Reserve will this week deliver measures to boost growth and contain the euro zone debt crisis.
With growth slowing across most major markets, one well-known stock market bear is predicting big losses for stocks in the third quarter, despite the chance of further central bank action to help shore up confidence.
European stocks are expected to open lower on Wednesday amid concerns over Spain and Greece’s finances and following a rare earnings miss by Apple. With Spain’s borrowing costs soaring after an auction of short term debt on Tuesday an alarm signal was sounded when the cost of borrowing over 5 years rose above the cost of 10 year borrowing.