The S&P 500 has fallen for four straight weeks, while the Stoxx 600 has tested recent lows.
European stocks and U.S. futures fell on Friday morning in London, signaling the selloff may continue.
The bank's strategists compare the current situation to the 1973-1974 period during Richard Nixon's presidency.
The environment of “extreme inflation” and rates shock is just setting in, the firm's analysts said.
The signal was triggered by poor investor sentiment and a surge in fund outflows.
Credit spreads and earnings revisions suggest it's too early to buy into the rout, say strategists.
U.K.-listed depositary receipts of Russian companies are evaporating in value as sanctions take effect.
In the week that pushed the S&P 500 Index to the verge of a correction, stock funds absorbed billions of cash.
The prospect of more hawkish Federal Reserve policy has sent shock waves across equity markets this year.
A rising rates environment may become a tailwind for Europe, strategists say.