Markets fell sharply on Friday.
The MSCI All-Country World Index fell 2.1 percent. The S&P 500 plunged 2.5 percent while the STOXX Europe 600 fell 1.1 percent.
Bonds also fell, with the 30-year yield rising 10 basis points to 0.60 percent in Germany and seven basis points to 2.38 percent in the US.
Markets were shaken after Boston Fed President Eric Rosengren said he supported gradual interest rate hikes. He said on Friday that if rate hikes were delayed, there is a risk that some asset markets like commercial real estate may “become too ebullient”.
This comes a day after DoubleLine Capital Chief Investment Officer Jeffrey Gundlach said “interest rates have bottomed” and told investors to be defensive.
Earlier on Friday, most Asian markets also fell after North Korea conducted another nuclear test. The KOSPI was predictably the worst hit, falling 1.3 percent.