'Big shakeout coming': markets stem losses as hedge fund sounds warning

After $4 trn losses last week, Australian shares fall 0.4% on Monday as US investor says markets have become 'complacent'

Financial markets are braced for more volatility this week amid predictions from the world's biggest hedge fund that a "big shakeout" is coming.

The Australian stock market was the first to test the water on Monday morning and one point was down 0.7%.

Related: Test of nerve for markets as 10 years of cheap money come to an end

Best & worst stocks after the first hour of trade on the #ASX 200. Source Bloomberg #ausbiz pic.twitter.com/lQaPktcr6Z

Bloomberg's world market cap chart has looked rather scary for awhile.

The parabolic rise from 80 to 90 trillion was reversed swiftly and sharply.

What comes next? $SPY $EFA $EEM@Schuldensuehner pic.twitter.com/Quo2u5uaQe

What Crushed Stocks? Treasury yields don't matter - until they do. Mortgage rates jumped. https://t.co/xWKDd064n2 pic.twitter.com/xZDHuhoL4y