Why equities under heavy siege in spite of FED rate hold

After cheerful Asia, equities are under heavy stress globally in European hours and heading into North America, in spite of FED signaled pause.

This move has baffled many in the market, who expected equities to cheer up after FED's stance last night.

While there could be N - number of reasons behind equities drop, below are some prominent ones-

• Investors pulled out of equities as in spite of rate pause from FED, it is likely to hike going ahead, given its bullish view on US economy.

• Investors are worried that volatility is likely to persist as China is much bigger concern, which has FED officials worried too.

• Equities in recent history has shown high affinity to stronger Dollar, with Dollar licking the dust after FOMC's decision to hold fire, equities tumbled too.

• Selloffs won't linger, it is just profit book the gains post dovish FED.

• Investors jumping to bonds as they are shining brighter.

S&P 500 is currently trading at 1969, down -0.9% today so far. Euro Stxx50 is down -2.1%, trading at 3175. German DAX is currently trading at 9945, down -2.8% so far today.