Though not making up all ground lost in heavy selling over the past two sessions, markets regained ground on Friday, as investors continue to come to grips with the new reality that central banks across developed markets are ready to normalize monetary policy.

“Investors reliant on the negative correlation between bonds and equities will be feeling the pain the most, highlighting the risks of a policy that has focused on asset price inflation. For now, cash is king,” Paul Flood, manager of the Newton Multi Asset Income Fund was quoted by the FT as saying.

“I am inclined to downplay the sell-off as the eurozone has plenty of reasons to expect a very gradual tapering of stimulus. We have a lot more economic ‘baggage’ that will probably keep inflation depressed for a very long time and even when Draghi does taper, I guess we will wait a long time before the ECB shifts into hiking rates,” said UBP strategist Koon Chow.