Markets fall, face more volatility, but emerging markets "looking attractive"

Global markets fell sharply on Tuesday.

The S&P 500 fell 1.2 percent and the STOXX Europe 600 plunged 3.1 percent.

Earlier on Tuesday, however, Asian markets held up better. The MSCI Asia Pacific excluding Japan Index lost 0.3 percent while the Shanghai Composite Index gained 0.9 percent.

Stocks may face further falls. Wells Capital Management chief investment strategist Jim Paulsen told CNBC on Tuesday that the S&P 500 could "head towards 1,800".

However, Russ Koesterich, BlackRock’s global chief investment strategist, said in a note on Tuesday that while it is too early to call a bottom to emerging markets and there could be more volatility ahead, valuations have become attractive.

“For investors with little or no exposure to this asset class, this may be a reasonable time to start slowly re-establishing positions,” he said.