U.S. stocks tumbled into correction territory Monday, as deepening declines among technology companies and elevated trade tensions between the U.S. and China unnerved market participants. The tumultuous session cast a shadow over Europe and Asia, with global investors subsequently starting the second quarter on a sour note.
"I do believe one of the fulcrums of unrest will be in Europe," David Marsh, managing director and co-founder at think tank OMFIF, told CNBC Tuesday.
He explained that while European bonds had largely "trodden water" since the Italian election last month, the situation could soon deteriorate as Euroskeptic and anti-establishment parties look to gain a foothold in power.
Alongside rich valuations and the risk of higher interest rates in the U.S., these factors are likely to trigger a "time of reckoning" for global investors over the coming weeks, according to Marsh.
"I actually do see the correction of another 10 percent happening (and) I think it will be overdue and probably salutary … It might cause some blood to flow and I'm afraid to say I think that is going to happen at some stage in the next weeks or months," Marsh said.