globel newsGlobal stocks set for worst week since September

It is not obvious to me that the market has hit a floor yet, Ian Shepherdson, chief economist at Pantheon Macroeconomics, told CNBC on Friday.

Global stocks set for worst week since September

The recent selling is also thought to have been exacerbated by expectations of higher U.S. interest rates.

Many market watchers believe the market turmoil over the past week is reflective of a long overdue pullback after substantial gains in and early .

Shepherdson said he was inagreement with New York Fed President Bill Dudley, in that the recent market turmoil was not evidence of a macroeconomic event … yet. Therefore, the Fed would likely continue to raise interest rates throughout , he added.

Global stocks were on track to post their biggest weekly decline since the of the euro zone crisis on Friday, after alate slump on Wall Streettriggered another dramatic selloff.

Nonetheless, over the past year, the record bull run has been viewed withskepticism by many market watchers, who have frequently warned against historically overvalued stock prices. The main drivers of socalled inflated asset prices are thought, in part, to stem from synchronized global growth, unhinged exuberance among traders and prolonged stimulus from central banks.

U.S. stocks have generally been moving higher for about nine years and during that time, indexes have gained around percent, not including idends.

The moves on Wall Street consequently dampened sentiment in Asia and Europe, with investors watching closely to see if global indexes go into a correction.

Investors were reminded of marketintrinsic risks by the ct that some of the latest product innovations went up in smoke, taking stock markets halfway with them, Christian Gattiker, chief strategist and head of research at Julius Baer, said via email on Friday.

We doubt that we will ever learn the truth behind what will go down in financial history books as the short volatility flash crash, he added.

Many market watchers believe the market turmoil over the past week is reflective of a long overdue pullback after substantial gains in and early . The recent selling is also thought to have been exacerbated by expectations ofhigher U.S. interest rates.

The MSCIs broadest index of global shares which captures worldwide equity returns in developed and emerging markets slipped . percent over the past week. And, as long as the index is still more than . percent lower when U.S. markets close later on Friday, will mean it lls to its worst weekly loss since September .

U.S. stocks fell sharply on Thursday, as robust corporate earnings and strong economic data did little to offset Wall Street jitters about higher interest rates. The Dow Jones industrial average closed over , points lower at ,., entering correction territory. The stock index also closed at its lowest level since November . The Dow is also on track to post its biggest weekly decline since October .

Asian stockscontinued a market routon Friday, as Chinese equities ed percent. Both of Beijings major indexes posted their largest singleday losses since February . Meanwhile,in Europe, stocks were mostly trading lower on Friday morning, as investors monitored the release of fresh corporate news while keeping an eye on market turbulence across the world.

It is not obvious to me that the market has hit a floor yet, Ian Shepherdson, chief economist at Pantheon Macroeconomics, told CNBC on Friday.