Global stocks end worst quarter in four years on upbeat note
By Herbert Lash
NEW YORK (Reuters) - Global equities ended their worst quarter since the 2011 euro zone crisis on an upbeat note with a rally on Wednesday on hopes that Wall Street had bottomed and the commodities rout was over, while the dollar also rose.
Major equity indexes around the world declined 10 percent or more from July through September as fears mounted of a global slowdown brought on by China. Slower Chinese growth also slammed commodity prices and countries that depend on their export.
European stocks turned in their worst quarter since the depths of the euro zone debt crisis, when regional indices such as the blue-chip Euro STOXX 50 index slid 23.5 percent in the third quarter of 2011. The index rose 2.3 percent on Wednesday, but closed the quarter down 9.5 percent.
Analysts questioned the strength of the equity market's rally, which was helped by a Chinese tax cut on small cars aimed at reviving sales in the world's biggest auto market.
Peugot rose 6.4 percent and Fiat Chrysler rose 4.8 percent in Europe.
A sense of panic ebbed and more investors viewed the market as oversold, but many remained uncertain, said Brian Fenske, head of sales at ITG in New York.
"I don't think there was a real catalyst," Fenske said of the day's surge. "We're getting a real snapback."
Rick Meckler, president of hedge fund LibertyView Capital Management LLC in Jersey City, New Jersey, also cited the notion that the sell-off was over. Continued...