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Global Stock Gauge Nears Oversold Zone As Selloff Deepens
A global equities benchmark has fallen precipitously close to oversold territory following a selloff in risk assets this month.
16 Apr 2024, 03:35 PM IST 
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Sept. 20, 2021. The global stock rout sparked by investor angst over China’s real-estate sector and Federal Reserve tapering deepened on Monday, with U.S. stocks falling more than 2% and European equities tumbling the most in more than two months. Photographer: Michael Nagle/Bloomberg
(Bloomberg) -- A global equities benchmark has fallen precipitously close to oversold territory following a selloff in risk assets this month.
The MSCI All Country World Index’s 14-day relative strength index dropped below 33 on Tuesday to levels last seen in October. A reading of 30 or below indicates a possible reversal in the market’s momentum as the selling may have been be overdone.
The gauge has lost nearly 4% in April, on track for the first monthly decline since October, as waning Federal Reserve easing bets and escalating Middle East conflict sapped the appeal of equities.
Read more: Stocks Look More Vulnerable in Asia Than Peers on Fed Re-Pricing
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