Bad run for markets easing off - Analyst

BAD RUN FOR MARKETS EASING OFF - ANALYST After Thursday's rout, investors continue to digest and rebalance the Fed's plan to scale back stimulus. European shares seen opening flat to slightly higher after the biggest one-day drop in 19 months yesterday. CMC Markets Analyst Michael Hewson says further downside is possible, but once the markets have adjusted to the idea of QE tapering, that bad run is likely to be limited. SHOWS: LONDON, ENGLAND, UK (REUTERS - ACCESS ALL) (JUNE 21, 2013) 1. CMC MARKETS ANALYST MICHAEL HEWSON, SAYING: " (QUESTION: Well, Michael, pretty awful day yesterday. A bit quieter today, though.) Yeah, it was a bit "squeaky bum time" yesterday, to coin a phrase from a famous Scottish manager, but we are appearing to stabilize a little bit today but we essentially, we're looking at five successive weeks of losses on European market's worse run, I think since 2011. And I think investors really need to adjust to the new reality that there's a possibility that the Fed could start to be looking at an exit strategy for its current stimulus plan. Obviously, those concerns out of China about a credit crunch didn't really help on the margins, but that also does appear to be easing and we're looking- we're looking at a positive open. And I think more importantly, the FTSE 100 does appear for the moment to be holding above the 200-day moving average. (QUESTION: Okay. Now you say it's the worst weekly run, five weeks of worse run since 2011, and we're on for the first month of decline in a year but okay, that sounds bad but the first monthly decline in a year- 11, 12 months of increases; we're doing pretty well still. I mean, are we not overreacting here?) Yeah, absolutely. I think so. And I think that's really what- I think that's the context, I think, that you need to put these declines into. We have had a very good run. And I think one monthly decline or five weekly declines, yeah, it sounds bad but as I say, we have to put it into that context. And I think once markets settle down and inv...