Markets mixed, “broader risk-off brewing”

Markets were mixed on Tuesday.

The S&P 500 closed 1.2 percent lower but well off the session low. In Asia, the Shanghai Composite plunged 2.6 percent while the Nikkei 225 tumbled 1.7 percent.

However, the STOXX Europe 600 rose 0.7 percent.

Analysts remained cautious.

“I don’t think it’s done,” said Liz Young, head of investment strategy at SoFi.

Barclays’ Maneesh Deshpande said that “signs of a broader risk-off are brewing”.

John Kicklighter at DailyFX warned that volatility is dangerous.

“If volatility does not settle in the upcoming session in observation of the impending FOMC event risk – what is supposed to be the top fundamental theme and event risk – I would consider this market severely unstable and prone to an ‘accident’ in collective sentiment,” he wrote.