Equities weakened considerably and the dollar strengthened based on the minutes of the US Central Bank’s April policy meeting, released in the middle of the week.
A number of members of the policy committee believe it would be appropriate to raise US interest rates on June 15th if economic data and market conditions keep strengthening and inflation approaches the 2% target.
The minutes spooked markets and especially the mining sector. Commodities are priced in dollars and a weak dollar is generally good for the sector. A rise in interest rates means a stronger dollar.
US Government Bond prices were also hit, with yields rising. Futures were indicating that a hike in interest rates was unlikely.
Emerging market stocks were also hit badly as the dollar strengthened.
