* Shares end lousy quarter on high note
* Glencore (LONDON:GLEN) up 6 percent
* Emerging market FX rebounds
* Pressure on ECB to fight deflation
By Jamie McGeever
LONDON, Sept 30 (Reuters) - Stocks were on track to end
their most bruising quarter in four years with gains on
Wednesday, led by shares that have been most exposed to global
economic slowdown and commodity sector rout that have rattled
investors in recent days.
It was a similar pattern in foreign exchange where emerging
market currencies, having been crushed to historic lows, rose
against the dollar.
In early trade the FTSEuroFirst 300 index of leading
European shares was up 1.9 percent at 1,361 points .FTEU3 ,
with Germany's DAX .GDAXI and France's CAC 40 both up 2.3
percent.
Shares in mining and trading firm Glencore, which plummeted
on Monday on the back of sliding commodity prices, rose 6
percent after it sought to reassure investors over its debt
situation. They had risen 17 percent on Tuesday. ID:nFWN11Z03I
Britain's FTSE 100 was up 2 percent .FTSE , and U.S. stock
futures pointed to a rise of around 1 percent at the open on
Wall Street ESc1 .
Overall, investors will be glad to see the back of the third
quarter.
"The market is a bit oversold but there are still worries
over the growth outlook and central bank policy," said Antonin
Jullier, head of equity trading strategy at Citi in London.
"The kind of volatility we are seeing is not the good kind.
Risk appetite is being hurt."
The FTSEuroFirst is on track to post a 10 percent loss in
the third quarter, the biggest since a 17 percent decline
exactly four years ago in the white heat of the euro zone
crisis.
Earlier in Asia, MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS rose 1.8 percent after
plumbing its lowest since June 2012 on Tuesday on fears that
China's economic slowdown would curb that country's huge
appetite for commodities and resources.
The index was on track for a 17.5 percent loss in the
quarter, also its worst performance in four years.
Japan's Nikkei .N225 brushed aside an unexpected drop in
the country's industrial output to close up 2.7 percent, paring
losses for the quarter to 14.1 percent, its deepest since 2010.
EURO ZONE QE2?
Euro zone inflation and U.S. private sector employment data,
as well as a speech from Federal Reserve Chair Janet Yellen
could give markets further direction later on Wednesday.
Annual euro zone inflation is expected to have dipped to
zero in September, but surprisingly weak Spanish and German data
on Tuesday suggest the regional number could turn negative,
adding to pressure on the European Central Bank to inject more
policy stimulus.
"We expect QE (quantitative easing) to be increased this
year, but December remains more likely," RBS (LONDON:RBS) rates strategists
wrote in a client note on Wednesday.
"To accelerate this timeline to October we would need to see
substantial further downside in equities, another meaningful
slip in the Chinese yuan, and/or further negative hard data on
China."
The euro was on the defensive on Wednesday, down 0.2 percent
at $1.1225 EUR= , and two-year German bond yields were
unchanged at -0.25 percent EU2YT=RR .
Demand for the safe-haven yen eased as stocks steadied. The
dollar fetched 120 yen JPY= , having turned around from a low
of 119.24.
Yields on U.S. Treasury bonds rose. The 10-year yield was up
3 basis points to 2.08 percent US10YT=RR as comparable German
yields were little changed.
Emerging market currencies fared better against the dollar.
South Africa's rand rose 1 percent ZAR= although it was still
on track for a quarterly loss of 14 percent, its 14th in
succession.
Zambia's kwacha, which had hit a record low on the back of
concerns about Glencore and a falling copper price, rebounded 2
percent ZMW= .
Benchmark three-month copper on the London Metal Exchange
CMCU3 rose 1.7 percent to $5,057 a tonne, compared with a
six-year low of $4,855 hit in August.
Prices of other industrial metals, including aluminium
CMAL3 and zinc CMZN3 , also halted recent slides.
Crude oil futures were mixed. U.S. crude CLc1 fell 0.3
percent to $45.11 a barrel, while Brent rose 0.2 percent to
$48.30.