Global capital markets came under intense pressure towards the end of June, with a sell-off spree reflecting a mix of geopolitical tensions, inflation concerns, and investor uncertainty.

The turbulence observed around June 23 showed that equities, currencies, and bonds all lost appeal as investors pulled back from risk amid persistent instability and growing doubts about the US central bank's policy direction.

Globally, market sentiment remained fragile. Asia-Pacific markets, per CNBC, were poised for a mixed open, as optimism over a potential Iran-related diplomatic breakthrough was offset by scepticism about its durability. The development highlighted how geopolitical developments continued to influence investor confidence, driving market volatility.

Apart from immediate triggers, analysts have flagged bigger structural risks. A Reuters analysis warned that “momentum crash” signals were flashing red across asset classes. It further stated that valuations in several markets had become “detached from economic reality,” raising the risk of a sharp correction if investor sentiment shifts.

Financial analyst Jamie McGeever pointed out that crowded trades, excessive leverage, and widespread belief in sustained gains could amplify any downturn. Such conditions, he stressed, have historically preceded market reversals, with the severity determined by how abruptly investors exit these positions.

A key focus of current risk assessments is the bewildering........

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