It's shaping up to be a risk-off day as the storm clouds are weighing on market sentiment again after a bit of a breather in the first two days this week. European equities are down heavily across the board and we're now seeing key indices start to hit their lowest levels since March in trading today.

The DAX is down 2.3%, CAC 40 down 1.9%, and FTSE MIB down 2.3% and are all looking poised for a potential drop towards their respective March lows:

The losses aren't contained to European indices as US futures are also enduring a torrid time so far on the day. The S&P 500 gained by ~90 points in trading yesterday but futures are pointing to a ~70 points decline, or down 1.9%, at the moment.

Higher and more persistent inflation, central bank tightening and a deteriorating economic outlook continue to present a major challenge to the market landscape for the time being. The worst part? It doesn't look like those dispositions will change any time soon.