Central bankers have given markets a rude awakening from their summer slumber but investors were not ready for an end to falling rates, according to a research note from Barclays.
"There are signs the post-Brexit 'goldilocks' backdrop of better growth data and falling rates may be turning and investors do not seem positioned for it," Keith Parker, global equity strategist at Barclays said in the note.
Global stocks are witnessing a substantial sell-off in the current trading session after U.S. markets closed sharply lower on Friday, with all three major indices posting their worst day since June 24, when the U.K. voted to leave the European Union.
Friday's sell-off was felt by Asian and European stocks Monday, that slipped amid concerns that the U.S. Federal Reserve could raise interest rates as soon as end of this month. But Barclays' Parker warns that investors are not ready for this change.